How to Buy General Liability Insurance for Contractors in California?
Companies involved in higher-risk industries find general liability insurance a mandatory expense. It is also a business for which these companies pay a much higher premium than lower risk organizations.
Taking care of the purchase of California Contractor General Liability Insurance means to cover all elements related to construction projectsincluding site structure and equipment used for the project, workers and any other aspect of the construction job.
The basis for the type of policy a company should have depends on its size and scope. No two liability policies are structured the same. What suits one company may not be suitable at all for another company situation. Working with the right agent to develop a custom contractor general liability plan ensures you have the right option for a company’s specific needs.
Tips for Buying Affordable Contractor Liability Insurance
The ideal way for a company to get the best rates and receive discounts on their contractor insurance is to follow these guidelines:
- Produce quality work every time
- Make it a goal to keep the safety record clear
- Striving for low claims
- Striving for professionalism
- Only work with an agent who has industry experience and knowledge
The total costs depend on the work you do and the size of your organization. For example, a company that performs paving work could pay as much as $20,000 in a given year, while an individual contractor doing similar jobs would pay only a fraction of that.
The reasons are minimum equipment for the job and no requirement for worker comp. On the other hand, a large company undertaking significant large projects would likely pay millions in premiums. Factors that carriers consider:
- The business income
- Size and size of the jobs
- Employees on the projects
- The location where you will work. There may be higher premiums for those completing jobs near the coast as flood cover would be a necessity.
What to Look for When Buying an Insurance Plan
When shopping for the ideal insurance policy with the best premiums, there are specific things to consider. It should be appropriate for your specific business and cover everything you get involved in — some of the things to look for when buying.
Discover everything covered by the policy. If you find yourself involved in injuries or possible lawsuits, these are usually handled as they become a factor on the site. For individuals you employ, that would fall under a different type of plan referred to as workers’ compensation.
There is also no protection if you make professional mistakes in your job, making it imperative to strive for the highest quality amenities.
It is wise to buy policies before committing to any specific decision. Some of them offer similar protection, but the prices are significantly different. If you choose to buy the first liability plan you come across; you could be wasting a lot of money that might be better used elsewhere within the company.
For add-ons that offer a relatively low premium each month, the deductibles are generally extremely high, making them not cost-effective.
– Own risk
When you find yourself needing to file a claim, the deductible is the money you have to pay up front out of your own pocket. Once this amount is paid, the insurance company pays the rest. When an insurer offers low benefits, the deductible is usually exceptionally high. In many cases, it’s too high to take the risk on that particular plan.
The best option is one that is median for premium and deductible. If you have never used insurance in your career, the low premium/high deductible may make sense. But it is essential to reason; there is always a first time for everyone.
Please read the policy thoroughly before agreeing to the terms, including the fine print. If you’re having trouble understanding what you’re reading, have a lawyer do it for you who can explain it so you can understand. Once it’s clear and obvious, you’ll know if it’s the right one for you and your projects.
General contractor liability coverage is mandatory in California. Contractors are grateful to have protection against those unforeseen incidents that could otherwise cost them their business if there is no plan.