Questions California Contractors Insurance Agents Need To Ask Contracting Professionals

By Helen Ovellette

When the economy is on the upswing, the benefits to the construction business are usually enormous. People will invest in new homes and plan renovations of their existing residences. The idea of starting a construction business, or getting back into the field, becomes more attractive. All kinds of contractors suddenly have more work, and they will all need to be insured. This is a wonderful opportunity 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.

Carpentry is a high growth industry. It is also a risky business. Over a third of professional carpenters are self-employed. You need to know if your carpenter clients are framers or finishers. You should ask if they work in a shop or travel to their customers' homes. Depending on the answers to your questions, you might suggest builder's risk, contractor's equipment, inland marine, auto, property, and general liability coverage.

Another high growth industry is the plumbing business. This is generally a fairly stable business. You need to ask this client whether or not he works on boilers. If he does, he may be covered by the carriers. You need to know if the plumber has a showroom where customers are allowed access. If so, there is always the 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.

A smaller field, that has seen a downturn, is electrical installment. There is generally less need for installers and repairmen because consumers have gotten used to purchasing new electronics instead of spending the same money on repairing older models. Electronics are more reliable today because of new technology. If you have an installer client, you should ask if he is a business owner. If he is, he needs a good business owner's policy.

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.

If you are looking for new clients, making the contracting business one of your targets is a good idea. Most facets of the industry are experiencing steady growth. It will always be a relatively risky business that requires good coverage.

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