Any time that you are applying for new construction insurance in New York, you or your business needs to go through a form of underwriting. This is what happens during the time that you apply for insurance and wait to hear back for approval or denial. Underwriting is a thorough process that checks your business and assesses risks to determine your insurance rate.
Checking Your Business
Basically, everything that your business has done since it was established is examined by an insurance agency. They look at finances, transactions, and even see what people are saying about you. The actions of your business have a direct effect on how risky it is to insure you. Construction can be volatile even in a steady economy, so its important to have good business practices to get better insurance rates.
Once the company has examined your business history in detail, they determine what sort of risks you pose. How likely are you to get sued? Do you take proper safety precautions with each job? Once they have assessed your risks, they will notify you of approval and rate.
Getting a Good Rate
The fewer risks you have, the more likely you are to get a lower premium for construction insurance in New York. Before you ever apply, you may be able to determine whether or not you will get a good rate by doing a preliminary underwriting process of your own. Keep in mind that insurance quotes may differ from your final rate once the underwriting process is complete.