The COVID-19 pandemic has disrupted new and existing construction work across the country. Several states, including Pennsylvania, Michigan, and Washington, have deemed construction nonessential. This means no one is visiting worksites and that no employees are clocking in or driving fleet vehicles.
However, during this time, expenses keep piling up. One cost that all construction sites likely have is insurance. From covering employee safety to protecting your fleet, you still pay regardless of the need.
One way you can save money during this time is to suspend your coverage. Here are some steps you should take while your site is shut down.
Review Your Various Insurance Policies
Unless you bundled all of your different insurance policies under one plan, it is unlikely that you have one uniform policy for the different types of insurance you need. Start by reviewing the different premiums and policies of each insurance provider to see how they are handling the COVID-19 pandemic.
For example, start with fleet insurance. If you have company cars or work trucks that aren’t in use right now, there is little need for insurance coverage. Bakersfield Now created a list of insurance companies that are offering rebates to drivers who aren’t on the roads during the pandemic. These companies might be willing to pause your fleet insurance or reduce the overall rate if you reach out to them.
Consider which forms of insurance you need right now and which ones you don’t. For example, you may not need personal liability (slip and fall) insurance if your lights are off, but need to protect your worksite and main office in the event of a fire or major storm.
While you may not be able to pause all of your insurance premiums, reductions or temporary holds on a few could significantly ease your financial burden.
Ask for a Suspension Because of Hardship
When you reach out to your insurance companies, ask them to suspend your account for however long you expect the shutdown to last in your area. For example, Pennsylvania Governor Tom Wolf has extended his state’s stay-at-home order to May 8 for construction projects. You will want to make sure you have insurance on May 9 if the construction sites re-open, but also have the option to extend the suspension for another few weeks if the shutdown continues.
If your insurance provider needs a reason from you for suspending coverage, explain that this is a hardship suspension while your business is shut down. Your insurer may have set hardship guidelines or have policies in place to handle business accounts during the COVID-19 pandemic.
Use This Period to Review Your Business Insurance Options
If your insurance provider hasn’t been willing to help you during this pandemic or in the past, then it may be time to change providers.
“Even if you’re happy with the service you’ve received from your insurance company, things are always changing,” the team at Next Insurance explains. “ If your insurance policy has stayed the same for many years, it’s likely that there are better options available now.”
If you are adamant about suspending your insurance policy during the COVID-19 pandemic, then you may need to cancel your agreement with your current insurer and explore the market again. Not only will you save money during the next month during the shutdown, but you could continue to save with a better plan in the coming months and years.
Just make sure that your new policy kicks in before your business can open again, otherwise you could face further delays in recovering from the pandemic.
Some insurance companies are going to be easier to work with than others. However, if you can suspend at least a few insurance payments, then you can save a little during the pandemic and keep your company afloat.