Why California Contractors Insurance Agents Need To Know Exactly What Their Clients Do

By Vincent Madden

When the economy is going well, the construction business almost always benefits. People who feel confident about the future are willing to spend their money on new houses and the remodel and expansion of older ones. This encourages newcomers to start building and repair businesses, and those who have been in the business for years to expand. All of these people have to be insured. That opens great opportunities for California Contractors Insurance Agents.

Agents have to understand exactly what the contractor does in order to insure him properly. Handymen, for instance, tend to do smaller, residential repairs and maintenance. You need to know what kinds of services he provides his customers. His answer will help you decide whether a general liability, inland marine, contractor's coverage, or builder's risk policy is appropriate.

The carpentry field is growing in today's economy. This can be a risky business. Most carpenters, whether they are framers or finishers, are independent and self-employed. You should ask these clients if they work exclusively out of their shops or work on job sites. Depending on their answers, you may decide the best coverage would be general liability, property, commercial auto, inland marine, contractor's equipment, and builder's risk.

Plumbing is also a quickly growing industry. This field is somewhat unusual because it is fairly stable. You need to know if the plumber works on boilers. If he does, he may be able to get covered through the carriers. Some plumbers have storefronts that include showrooms. You should ask if this is the case with your client. If customers have access to a showroom, there is always a possibility of third-party lawsuits.

You might not have considered window washers as contractors who are good potential clients, but this is a steady growth field with plenty of risk involved. You need to ask a window washer what kinds of buildings he services. Working on high rises is very different from washing windows on one or two story structures. These are people who would benefit from general liability, equipment, commercial auto, and workers' compensation, if they have employees.

Electrical installers are not as in demand as they once were. Consumers have found out that replacing electronics can be cheaper than repairing them. New technology has made electronics more reliable than they used to be as well. You should ask an electrical installer client if he is a business owner. If he is, he needs to have business owner's coverage.

General contracting is growing as an industry in this good economy. It's important to understand what your general contractor client actually does. Many of these people get involved in most aspects of the projects they manage. Those who handle big commercial projects will usually benefit from an umbrella policy. Contractors with employees need workers' compensation.

The construction industry, and other related industries, can be great sources of business. Contractors have to have insurance. As an agent, it's your job to make sure they have the right kind.

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