Selecting the right commercial liability insurance involves more than just comparing prices—it’s a strategic process that can shield your business from substantial losses and help support growth. After years of building insurance programs for government contractors, here are some essential tips for managing your insurance program to boost profitability and make your business more competitive for federal contracts.
1. Broker Selection: Expertise Matters
Begin by selecting a broker with extensive experience working with government contractors. While any broker can sell an insurance policy, only a few have the specialized knowledge to provide the correct coverage for federal contracts. Ensure your broker understands the unique risks in government contracting and can tailor your program to address these specific exposures.
2. Carrier Selection: Find a Specialized Partner
Choose carriers with dedicated government contractor divisions. These carriers excel in creating insurance solutions for unique situations, such as overseas contracts, working offsite at government installations, and the use of independent contractors. A carrier who understands these specialized needs, paired with a knowledgeable broker, enables you to bid on new contracts with accurate insurance costs built in.
3. Avoid Wasting Time and Resources
A well-negotiated insurance program safeguards your business’s cash flow and the time of key personnel in case of a claim. Working with an industry-savvy broker prevents last-minute coverage gaps that could derail bid opportunities. Don’t let a lack of proper coverage cost you months of preparation time on government proposals.
4. Keep Your Insurance Team in the Loop
Before bidding on new contracts, consult with your broker to ensure your insurance program can support any new risks involved. This step allows your bids to demonstrate not only cost efficiency but also your capacity to handle the unique exposures of each contract.
5. Leverage Risk and Safety Management Services
Ask your carrier about the risk and safety management services they offer. These services—such as safety audits, contract compliance checks, and risk assessments—help small to mid-size contractors manage exposures outside of the policy. Utilizing these resources enhances your company’s appeal by showcasing proactive risk management.
Contact Information
If you’re a government contractor with questions about optimizing your commercial insurance program, don’t wait until an issue arises. Reach out today for expert guidance on ensuring your business is well-protected.
