As we breach the midpoint of 2024, rising costs of insurance have put pressure on contractors in the bidding process. Entities offering contracts are also feeling economic pressure, so the roll-up of costs can be difficult for all parties. While some bid processes are accounting for shifting costs, others are becoming heated.
First take at addressing the impact of business insurance in the contract bidding process? Yep, go shopping… But what if that isn’t enough in this market? Many contractors operate in classes with limited carrier options. In situations where insurance pricing is a pressing issue, it is imperative that the bidding contractor express their case to the contracting party to retain profit margins.
Today’s contractors face difficulties negotiating the rising costs of insurance and the production a competitive bid for a few reasons:
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Costs pressure competition “cut corners” in insurance to obtain more competitive bid*
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Contract offering entities generally large or on state budget unwilling to listen
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Bidding contractor lacks quality response to “Why?” when conveying costs
*Misrepresenting coverage is not condoned and is illegal
At Wes Connor Insurance, an independent agency in Charlotte, NC, we monitor the economics of the insurance market for our clients. We empower them with the reasons behind change to channel into their business when required. Change propelled by socioeconomics, 3rd party litigation funding, inflation, billion-dollar weather events, etc. In some circumstances, for large scale contracts, we have taken our reasoning directly to the State Department or other entity so that the words can have maximum impact.
Our agency aims to deliver premier service through transparent, real conversation.
