Find out what steps you need to take to become an approved contractor for insurance work.
When you think of the relationship between trades professionals and insurance providers, you likely envision Contractors Insurance and the coverage they need for their business. However, there’s actually a lot of opportunity for this exchange of services to be reversed, with contractors providing work for insurance companies and their clients.
When an insurance customer submits a claim that requires repairs or construction, policy providers need contractors to complete these services. This can be a great revenue stream for general contractors who specialize in remodeling and carpentry.
But how do contractors get insurance work? In order to be eligible for this type of bid, you must follow certain steps before insurance companies can approve your business to work on these jobs.
Below, the APOLLO team shares what actions trades professionals need to take in order to become a preferred vendor.
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Three Steps to Becoming an Approved Insurance Contractor
Want to know what you have to do in order to become a preferred trades vendor? Below, you will find the three major steps you need to take to become an approved insurance contractor and win bids from your local providers.
Step 1: Build Up Your Professional Experience and Portfolio
If you want to work with insurance companies, they need to know that you are an experienced contractor with a professional background. Most providers will expect you to have a college degree or diploma in civil engineering or similar area of study, in addition to at least five years of experience in the field.
Recent graduates should focus on finding a variety of jobs that specifically provide exposure to remodeling and construction. Always strive to offer high-quality services, and ask clients who are particularly happy with your work to provide you with written testimonials.
For contractors who have been in business for a while without an academic background in the industry, it may be worth investing your time into earning a diploma. Without it, it’s very unlikely that you would be eligible for bids through insurance providers.
Step 2: Obtain the Right Tools to Work With Insurance Companies
To become an approved vendor, you will need to meet certain requirements. This means having the right accreditations in addition to the professional experience noted above.
Below is a high-level overview of what you will need to become a preferred contractor:
- Degree or Diploma: As discussed in Step 1, if you don’t already have a degree or diploma, you will need to earn one before you can become an approved contractor for insurance companies.
- Contractors Insurance: In order to get work through policy providers, you will need to be insured. Find out how to get custom Contractors Insurance, including commercial general liability coverage, for your business.
- Contractors License: If you don’t already have one, now’s the time to obtain a license for your operation. You will need to fill out the necessary paperwork and, in most cases, pass an exam.
Step 3: Nail Down the Details for Your Business
Once you’ve obtained all the required certificates and licenses, you’ll need to register your business with the Canada Revenue Agency (CRA). This is a relatively easy step, and can be completed entirely online.
When registering your business, you will need your:
- Social security number
- Date of birth
- Business name
- Business number
- Type of business
- Business address
- Date of incorporation
- Certification number
- Employee information
Related: How to become a general contractor
Partnering with Local Insurance Companies
After you’ve taken the above steps, you’re ready to reach out to insurance providers in your area. Take your time and find a company that’s the right fit for your business.
As an independent contractor, it’s up to you to find work for your company. Offering your services as an approved trades professional for insurance providers is a great way to add to your revenue streams.
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