Thursday 28 July 2016

Tips To Help You Save Money On Insurance For Contractors In LA

By Thomas A. Carter


If you are a contractor, you should have insurance. It is almost impossible to do business without it for a large number of your customers will ask you to show them proof of liability insurance. Purchasing Insurance For Contractors In LA is also essential because your assets will be protected. You will not suffer losses if accidents or injuries occur when you are completing a project.

General liability insurance provides several vital covers. Collectively it insures bystanders, customers, subcontractors and employees against various claims, including property damage, body injury, slander, completed operations and defective products. A general liability policy covers the legal and judgment expenses arising from claims filed against the contractor. The expenses include lost wages, suffering and hospital expenses incurred by the other party.

The majority of contractors in Los Angeles, California spend a lot of money every year on insurance premiums. This is because they are unable to find an insurer who offers the best rates or they do not know about quoting process. Before you purchase a policy, it is advisable to look for a company which offers low premiums.

Many factors determine the cost of a policy. One of these factors is the amount and frequency of claims that are made against a contractor. As a main contractor, you can minimize the number of claims by getting insurance certificates from the subcontractors. The certificate should state that your firm is an additional insured in the project you are doing together. If a claim arises because a subcontractor was negligent, the company that insures the subcontractor will take liability of the situation. You can also report the claim to your insurer, but your insurer will only come in after the policy limit of the subcontractor is completely utilized and the claim is not yet settled.

Another way to lower your premiums is ensuring that the people who will drive your vehicles have good driving records. Ask the potential candidates to bring recent motor vehicle records during the interview. Statistically, individuals who have speeding violations are likely to cause accidents. Avoid hiring people who have several speeding tickets because this can increase your premiums.

Asking if there are any special discounts when buying insurance is also important. You can get a special discount if you insure your vehicles, business and home with the same firm. Negotiating the premiums is also important. You may qualify for lower rates.

It is also possible to lower premiums by lowering your liability risk. You can achieve this if you make your business safer to your stakeholders, customers and employees. For instance, you may opt to outsource risky activities to other contractors. You can ask an experienced agent to refer you to independent contractors who can deal with risky tasks on your behalf so that the risk will be moved to them. Your insurer can lower your premiums if your business appears safer.

Reviewing your policy is also vital. It is not a must that you insure everything in your business. Only insure assets that have value for the business. You should also look for ways to raise your deductibles so as to reduce the premiums.




About the Author:



No comments:

Post a Comment