Insurance excesses are a big deal and contractor insurance is no exception.

Chances are, you’re already familiar with the concept of insurance excesses. Ultimately, your excess is the amount you would be liable for yourself if you need to make a claim. So, if your excess was £250, and you made a claim amounting to £1,000, you would pay that initial £250 and your insurer would pay out the remaining £750.

What’s the catch? Some insurers are able to give you an extremely low premium because the excess is so high. Some people don’t think anything of this, but it boils down to a question of whether you can afford to pay your excess should you need to make a claim. If your excesses run into the thousands, you may well not have the ready cash to pay this, leaving yourself in as much of a financial quagmire as if you’d never had insurance in the first place.

This can eat into your life savings, leave you with debts or even result in the loss of your business, rendering the insurance premiums you’ve paid worthless. For this reason, you should always check your excesses when taking out an insurance policy

If you’re taking out a new policy, your insurance excesses will either be flexible or set in stone. If they’re set in stone, they should be made clear to you at some point during the sign-up process before you commit. If they’re flexible, you will often be able to choose your own excess limit and this will affect the price of your premium accordingly. Don’t be tempted to go for a high excess to lower your premiums — try to find a balance.

If you are currently covered by contractor insurance, the limits should be detailed somewhere in your policy documents so dig them out and have a read. If they seem too high to you, call your insurer and find out if they can be changed. If not, consider moving to a different insurer as soon as you can.

Once you know your excess limit, it’s always worth ensuring you have money set aside to cover your excesses should you need to. This means that if you need to make a claim, you’re not scrambling around to find the cash for your excess.

Kingsbridge Contractor Insurance believe excesses should be reasonable enough so that you can afford to pay them when you need to, while still keeping your policy premium affordable. For this reason, their excesses are £500 for a professional indemnity claim and £250 for a public liability claim.

To speak to Kingsbridge about all things contractor insurance, call their team on 01242 808740. Alternatively, you can browse their website for more information.