7 Insurance Mistakes That Can Sink a Contracting Business
Mistakes You Don’t See Until It’s Too Late
Every contractor account I review shows the same avoidable traps — hidden costs, ignored gaps, bad habits that quietly eat profits.
Mistake #1: No Comprehensive Plan
Business and personal coverages aren’t connected. One personal lawsuit can reach your business assets.
Mistake #2: Over-insuring Small Stuff, Under-insuring Big Risks
Too much coverage on tools, too little on lawsuits or major injuries.
Mistake #3: No Long-Term Strategy
Quote-hopping or staying forever with rate-creepers — both cost you.
Mistake #4: “It Won’t Happen to Me” Mentality
One incident (injury, sub mistake, lawsuit) and it’s game over.
Mistake #5: Poor Books = Hidden Premiums
Sloppy payroll classes. No sub COIs. Late audits. Big bills.
Mistake #6: Price Over Value
Same price doesn’t mean same quality. Some carriers make certs and audits a nightmare.
Mistake #7: Not Knowing Enough to Catch a Bad Agent
You don’t need to be an expert — but you do need to be informed.
Quick Win: Spot Your Gaps
Are business + personal coverages coordinated?
Are your limits where they should be?
Are your books clean and audit-proof?
Are you thinking long-term — or just about this year’s premium?
Why I Care?
Bad policies don’t hurt when nothing goes wrong. But when they do, they explode. My job is to make sure that doesn’t happen.
Bottom Line Clean it up now — or pay the price later.
