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

By Robert Shepard

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.

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 must have errors and omissions coverage. This policy will cover errors, omissions, or negligence for which you are deemed responsible during the course of a job. Unfortunately, not all workers are honest. It is a good idea to protect yourself with an employee dishonesty policy. That way, if one of your crew removes something from a site illegally, the replacement cost will be covered.

If you have employees, you must have workers' compensation insurance. This covers workers who get hurt on the job. It will pay their medical expenses and for some of the worker's wage until he is able to return to work. Umbrella liability coverage is always a good idea. This policy kicks in once you've exhausted the limits of the other policies.

You should consider installing GPS tracking devices on all your company vehicles, and your equipment, to increase security and make recovering them easier. Installing a security system at your business location will discourage theft. Both of these measures will decrease the likelihood that you will have to file a claim. You should definitely bundle your policies.

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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