Contractors & Tradesmen

Out of all of the different types of businesses we serve, Contractors and Tradsmen just might be our favorite.  Northwest Michigan provides a lot of opportunities for all types of trades, all who work very hard for their customers.  Out of bed early, and late night hours just to get the job done.  We appreciate that type of work ethic, and we are more than willing to provide the same type of support for our clients.  Although we offer services to large contractors, the majority of our activity is working with smaller construction operations, often referred to as Artisan Contractors. These contractors work in a variety of settings, such as on large construction projects under the direction of general contractors, operating smaller projects in residences, specializing in installations or working on renovation or remodeling projects.

Artisan contractors are involved in many types of specialties such as plumbing, electrical work, minor excavation, landscaping, heating, air conditioning, painting, roofing, dry-walling, carpentry, remediation services, asphalt/paving, etc. These operations need a full complement of insurance services, such as (but certainly not limited to) general liability, inland marine (to protect their tools/equipment), workers compensation, commercial auto, excess liability and commercial property.

There is no standard definition of an artisan contractor. They are typically defined according to an individual insurance company's underwriting rules. The factors typically considered are:

• The number of employees
• Contractor's role in projects (general vs. sub-contractor)
• The amount of net income
• Size and number of projects or work sites
• Type of projects
• Growth of the particular operation

Building booms, which can spur a substantial increase in the number of artisan contractors, contribute to making these operations difficult to insure. Construction is a hazardous business under the best circumstances. Artisan exposures are tricky because their small size means less premium dollars, yet many of their loss exposures are the same as much larger construction operations. A new artisan contractor often means an inexperienced contractor and the inexperience usually results in a higher number of losses.

Owners of artisan contractor operations are highly dependent upon knowledgeable insurance professionals to help them identify their protection needs, especially in the areas of handling exposures to the contractor's tools and equipment. Complete information must also be developed concerning losses that may occur on their customer's premises and damage a contractor may cause to property that belong to third parties, but which is in the contractor's possession or control.

It gets complicated fast, which is why you should work with a professional.  Call us before your next renewal and let us work for you as hard as you work for your clients.