Why You Can't Afford Not To Buy California Contractors Insurance

By Jerry Gray

Bidding on construction jobs is very competitive. There can be a significant amount of money at stake. If you want to be a contender for legitimate jobs, there are certain requirements you must meet. It is not enough to come in as the lowest bidder with years of experience. California project managers will expect to see all the required certifications and licenses. You'll be required to Buy California Contractors Insurance and describe the type of coverage you currently have.

Sometimes a contractor will try to cut corners by keeping as little insurance as legally required, or let it lapse with things are tight. This is a terrible idea because something unexpected always happens at the worst possible time. If you are held responsible for a job that went wrong, you could face financial ruin without adequate coverage. As long as you are adequately insured, you will have protection from equipment theft or damage, worker injuries, and even loss of office supplies due to a break in.

A standard business owner policy is a must for every business. This covers general liability, business interruption, and business property. When you own company cars and trucks, you need a commercial auto policy. Workers who drive their personal vehicles for your business purposes should have coverage in your commercial auto policy under a non-owned clause.

The tools and heavy equipment you use in your construction business can be extremely costly. You certainly want to protect them against damage or theft. You will have to cover any rented or leased equipment you have under contract. This will protect you from having to pay the replacement cost if a piece of rented equipment is damaged or destroyed.

You will never win a bid on any project without an errors and omissions policy. This is what will give you protection in the event errors, omissions, or negligence is claimed on a project under your supervision. Employee dishonesty coverage protects you from being responsible for the illegal acts on the job of someone who works for you. If something on the job site goes missing, you won't be personally liable for replacing it.

You must have workers' compensation coverage if you have full or part time employees. This covers the cost of medical attention if someone is injured on the job. It will also pay a percentage of an employee's regular wages if time off for recuperation is required. Having an umbrella liability policy in place is a good idea. This will kick in when your claims exceed the cost limits allowed by other policies.

The more you can do to prove to the insurers that you are unlikely to file a claim, the cheaper your insurance will be. You can install GPS tracking devices on your vehicles and machinery for better security and recovery. You should consider security systems at your business to deter thieves. You definitely need to bundle your policies wherever possible. All of these measures should help reduce your costs.

There is a lot of money to be made in the construction business. In order to win bids, and protect yourself, you must have good insurance policies in place. If you do not, you won't be awarded bids, and a misstep could ruin you financially.

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