Saving on Insurance Can Mean More Than a Lower Premium

When contractors think about saving money on insurance, the benefit seems simple:

Lower premium = more money in your pocket.

And while that's true, for a construction business, the impact can be much bigger.

We've worked with contractors who have reduced their insurance costs by 20%, 30%, and sometimes more after their insurance program was properly marketed and reviewed.

Saving $10,000 a year on insurance is great.

But what if that $10,000 in savings also helped you win more work?

Your Insurance Costs Affect Your Bids

Insurance is part of the cost of doing business.

When a contractor determines what they need to charge for a project, expenses like labor, materials, equipment, insurance and overhead all have to be accounted for.

That means higher insurance costs can ultimately contribute to higher bids.

Consider two contractors bidding the same type of work.

If one contractor has significantly lower insurance costs, they may be able to submit a lower bid while maintaining the same target profit margin.

That can make them more competitive without simply sacrificing profit to win the job.

A $10,000 Savings Can Be Worth More Than $10,000

Imagine a contractor reduces their annual insurance expense by $10,000.

The immediate benefit is obvious: they've lowered their annual overhead.

But now they may have more flexibility when pricing upcoming projects.

Instead of choosing between:

Lower the bid and sacrifice margin

or

Maintain the margin and potentially lose the job

lower operating expenses can give the contractor another option:

Submit a more competitive bid while protecting their target margin.

If that helps the company win additional projects, the impact of that original $10,000 insurance savings could extend well beyond the premium reduction itself.

More competitive bids can lead to more awarded work.

More awarded work can lead to more revenue.

And more revenue, when managed profitably, can help the business grow.

That's Why We Look Beyond the Premium

At Ohler Insurance Services, our goal isn't simply to find the cheapest insurance policy.

We specialize in contractors, which means we understand that insurance is part of the larger financial picture of running a construction business.

We work to create competition among insurance carriers, review classifications and exposures, and find a competitive insurance program that still provides the coverage the contractor needs.

For some clients, that has resulted in insurance savings of 30% or more.

For others, the biggest benefit may be better coverage, faster Certificates of Insurance, easier certificate management, or access to insurance markets better suited for their operations.

What Could Lower Insurance Costs Do for Your Business?

Insurance shouldn't be viewed only as a bill that comes due every year.

For a contractor, controlling insurance costs can help control overhead—and controlling overhead can make a business more competitive.

If your insurance hasn't been thoroughly reviewed or marketed recently, it may be worth finding out what's available.

Send Ohler Insurance Services your current policies or upcoming renewal information, and we'll take a look at your options.

Get a Quote →

Individual results vary. Premium savings are not guaranteed. Insurance rates and premiums depend on operations, payroll, classifications, loss history, coverage requirements, carrier underwriting and other factors.