How Restoration Contractors Can Reduce Their Business Insurance Costs
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Restoration contractors face higher-than-average insurance premiums due to the risks involved in mitigation, mold remediation, fire damage restoration, and hazardous material cleanup. While proper coverage is essential, there are proven strategies that help restoration contractors reduce business insurance costs without sacrificing protection.
1. Improve Jobsite Safety and Training
Insurance providers closely evaluate workplace safety when determining premiums. Contractors who invest in regular employee training, safety certifications, and written procedures often qualify for lower rates. Reducing accidents also helps maintain a clean claims history, which directly impacts long-term insurance costs.
Key safety improvements include:
Ongoing employee safety training
Proper use of protective equipment
Clear documentation of safety protocols
Fewer claims signal lower risk to insurers, leading to better pricing over time.
2. Maintain a Clean Claims History
One of the most influential factors in insurance pricing is claims history. Frequent or high-cost claims can increase premiums significantly. Restoration contractors should document incidents carefully, address issues quickly, and implement corrective measures to prevent repeat claims.
Maintaining accurate records and reporting only legitimate claims can help protect your loss history and keep premiums under control.
3. Bundle Insurance Policies
Bundling multiple policies—such as general liability, workers’ compensation, commercial property, and pollution liability—can reduce overall insurance costs. Many insurers offer package discounts for contractors who consolidate coverage under one provider.
Bundled policies also simplify policy management and help avoid coverage gaps.
4. Review Coverage Limits Annually
Carrying excessive coverage limits can increase premiums unnecessarily. Restoration contractors should review policies annually to ensure coverage aligns with current business operations, revenue, and project size. As businesses grow or change focus, insurance should be adjusted accordingly.
Working with an experienced insurance advisor helps ensure you are neither underinsured nor overpaying.
Why Choose Wexford Insurance
Wexford Insurance specializes in contractor business insurance and understands the unique risks restoration companies face. Their team helps contractors identify cost-saving opportunities, apply available discounts, and secure tailored coverage at competitive rates.
By combining strong safety practices, strategic coverage decisions, and expert guidance, restoration contractors can significantly lower insurance expenses while maintaining reliable protection.
