Why You Need To Buy California Contractors Insurance And What It Does For You

By Brenda Hathaway

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.

When business is slow, it is tempting to cut costs, letting policies lapse for the time being. All this does is leave you open to financial ruin if something unexpected occurs on a job site for which you are held responsible. As long as you've got the proper coverage, you're protected against personal liability for worker injuries or having to pay out of your own pocket when equipment is damaged or stolen.

All business owners need standard business owner coverage. This includes general liability, business interruption, and company property. If you use company vehicles you need to have a commercial automobile policy. Workers who are expected to drive their personal vehicles for company business should be covered under a non-owned clause in your policy.

Most construction companies own or rent extremely expensive heavy equipment. It has to be covered against theft and damage. When you making payments on your equipment, the lender will require the coverage. When you are renting or leasing, the lessor will require it. Without adequate coverage you would be responsible for replacing or repairing the equipment yourself.

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.

If you employ workers, the state you work in probably requires that you carry workers' compensation insurance. This is the coverage you will need if one of your workers is injured and needs medical attention. It also pays a portion of the worker's wages until the person is well enough to return to work. You can purchase umbrella liability coverage. This policy will kick in if your claims exceed the monetary limits of your 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 industry. This is especially true when you're awarded large contracts. You won't have a chance to even compete for projects though unless you have the experience, the pricing, the licenses, and the right kind of coverage.

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