How To Purchase California Contractors’ General Liability Insurance
Companies involved in higher-risk industries find general liability insurance a mandatory expense. It’s also one for which these businesses pay a much higher premium than organizations with lower risks.
Ensuring the purchase of California Contractor General Liability Insurance means to cover all the elements associated with construction projects, including the structure on the job site and the equipment used for the project, the employees, and every other aspect of the construction job.
The basis for the type of policy a company should obtain depends on the scope and size. No two liability policies are built the same. What will suit one company might be entirely inadequate for another business situation. Working with the right agent to develop a custom contractors’ general liability plan will ensure the right option for a company’s specific needs.
Tips On Buying Affordable Liability Contractors’ Insurance
The ideal way for a company to secure 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
- Strive for low claims
- Strive for professionalism
- Only work with an agent showing experience and knowledge in the industry
The overall cost will vary based on the work that you do and the size of your organization. For example, a firm that carries out paving duties could pay as much as $20000 in a given year when an individual contractor performing similar duties might only pay a fraction of that.
The reasons are minimal equipment for the job and no requirement for workers’ comp. On the other hand, a major corporation handling significantly large projects would probably pay premiums in the millions. Factors carriers consider:
- The business revenue
- Scope and size of the jobs
- Employees on the projects
- The location you’ll be working. There might be higher premiums for those completing jobs near the coast because flood coverage 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 needs to be adequate for your particular company and cover everything you become involved in —some things to pay attention to when buying.
– Coverage
Find out everything covered under the policy. If you find yourself involved with injuries or potentially with lawsuits, these are typically handled if they become a factor on the site. For individuals, you employ, that would fall under a different type of plan referenced as workers’ compensation.
There is also no protection if you were to make professional errors in your work, meaning it’s imperative to strive for the highest quality provisions.
– Price
It’s wise to shop policies before committing to a specific one. Some of them offer similar protection, but the prices are substantially different. If you choose to buy the first liability plan you come across; you could waste significant money that might have better use within the business someplace else.
For add-ons that might offer a relatively low premium each month, the deductibles are generally exceedingly high, making them lack cost-effectiveness.
– Deductible
When you find that you need to put in a claim, the deductible is the money you need to pay upfront out of pocket. Once this amount is satisfied, the insurance carrier will pay the remainder. Typically, when an insurer offers low payments, the deductible is exceptionally high. In many cases, it’s too high to take the chance on that particular plan.
The best option is one that is median for premium and deductible. If you never used insurance in your career, the low premium/high deductible might make sense. But it’s essential to reason; there is always a first time for everyone.
Final Thought
Thoroughly read over the policy before you agree to the terms, including the small print. If you have difficulty understanding what you’re reading, run it by an attorney who can explain it so that you can make sense of it. Once it’s straightforward and clear, you’ll know if it’s the right one for you and your projects.
General contractors’ liability coverage is mandatory in California. Contractors are grateful to have the protection for those unforeseen incidents that could otherwise end up costing them their business when there is no plan in place.
