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Last Updated: February 17th, 2024
1. Essential Coverage Explained
Learn about the importance of general liability insurance for contractors, offering vital protection against claims of bodily injury, property damage, and more. This insurance is a fundamental layer of security for your business’s financial health and reputation.
2. Tailored Insurance Solutions
Discover how insurance solutions can be customized for the construction industry, with insights into selecting the right coverage. Understand the role of brokers in accessing a wide range of insurance carriers to meet your specific business needs.
3. Understanding Financing Options
Gain insights into financing options for general liability insurance designed to accommodate the cash flow challenges common in the construction sector. Explore how these options make insurance accessible for a broad range of contractors.
4. The Value of Industry Expertise
Benefit from an in-depth look at the advantages of working with experienced insurance specialists who bring over 20 years of knowledge to the table. Learn how their expertise can guide you in navigating the complex landscape of contractor insurance.
Looking for California contractor’s general liability insurance? Good idea.
Even a minor accident can be disastrous for general and artisan contractors.
You likely already have commercial auto insurance for your work vehicles. However, general liability insurance in California can protect contractors from third-party claims resulting from accidents or injuries.
If an accident results in a suit against your business, you may be found responsible for the claimant’s medical and legal expenses.
Contractor’s liability insurance is a safeguard for your livelihood.
Why Us For Contractor’s General Liability Insurance?
We are California contractor insurance specialists who cater to the unique needs of the construction industry and have access to over 50 insurance carriers to ensure contractors have the proper insurance coverage at an affordable rate.
We are an experienced team of brokers and specialists with over 20 years of experience. Our extensive contacts, tools, and access to multiple underwriting markets allow us to customize a unique insurance solution for you.
Call us today to get a comprehensive general liability insurance policy at the most competitive rates.
For good or bad credit, we have several programs for contractors in place that enable us to offer favorable terms for 99.9% of the California contractors who contact us. Knowing that many construction businesses and general contractors are concerned about cash flow, we offer competitive financing to reduce your out-of-pocket cost.
Click the following link to find out how much a contractor bond costs.
What Does A General Liability Policy Cover?
While insurance policies and policy requirements may change depending on the project, most contractor general liability insurance covers the following:
- Bodily Injury
- Property Damage
- Product and Completed Operations
- Medical Costs or Bills
- Personal and Advertising Injury
If you need contractor’s insurance or a contractor license bond in California, call us at our toll-free phone number (888) 770-5834 to request a no-obligation, free quote from our team of experts. We have policies to suit the needs of contractors like you. Get the insurance coverage that you need at the right price.
Why do Contractors Need a General Liability Insurance Policy?
California contractors with general liability insurance are in a much better position than those without it. When a single incident could cost you thousands of dollars, many contractors could not stay in business.
If you’re a sub-contractor, most general contractors in California will likely require you to have general liability insurance before they hire you. Some companies require that they are added as an “Additional Insured” on your policy as a requirement of working with them.
Contact our licensed specialists regarding any project-specific insurance requirements you may have to ensure your policy is quoted correctly the first time.
How Much Does General Liability Insurance Cost?
For contractors in California seeking general liability insurance, the cost can be as nuanced as the work you do. The price fluctuates based on business size, payroll amounts, and your operations. This crucial insurance helps protect against liabilities such as job site injuries and property damage.
We provide competitive rates tailored to your business’s unique needs. Below is a general pricing guide, and is subject to change depending on your operations:
- $0 Payroll: $895/Year
- $1 – $30k Payroll: $1,195/Year
- $30k – $60k Payroll: $1,495/Year
- $60k – $100k Payroll: $1,995/Year
- $100k+ Payroll: $2,000+/Year
Please get in touch with us for a precise quote that accommodates your specific business circumstances and coverage requirements. We’re here to help you secure the right coverage at the right price.
How Do Claims Work For Contractor General Liability Insurance?
When understanding how claims work for Contractor General Liability Insurance, it’s essential to grasp the basics. If an incident occurs where your business is at fault, this is where your general liability insurance policy steps in. The process usually follows these key steps:
Incident Reporting – As soon as an accident or incident occurs, it’s crucial to report it to your insurance provider. Prompt reporting can significantly streamline the claims process.
Claim Evaluation – Your insurer will evaluate the claim. This involves assessing the incident details, the extent of damage or injury, and determining how the general liability coverage applies.
Resolution and Payment – If the claim is approved, the general liability insurance cover kicks in. This means the insurance will cover the costs up to the policy’s limit, including legal fees, medical expenses, or property damage.
Understanding this process is vital for every contractor. It ensures that in the face of a claim, you’re prepared and knowledgeable about how your business insurance will support you.
General Liability Insurance Requirements For Contractors in California
Navigating the insurance landscape in California can be complex, but knowing the general contractor insurance requirements is crucial for compliance and protection.
Here’s a concise breakdown of what’s typically required:
- Commercial General Liability Insurance Policy: A fundamental requirement offering protection against third-party claims for bodily injury, property damage, and more.
- Proof of Insurance: Contractors must be able to provide evidence of their general liability coverage when requested, especially when working on new projects or with new clients.
- Coverage Limits: There are often specified minimum limits for general liability insurance coverages. These limits can vary depending on the project size or client requirements. We always recommend forwarding us a sample certificate to ensure we quote and issue the necessary coverage.
- Additional Insured Endorsements: In many cases, contractors must add their clients or partners as an ‘Additional Insured’ on their policy.
By adhering to these requirements, contractors in California ensure they meet legal standards and safeguard their businesses. This proactive approach to construction insurance meets regulatory demands and instills confidence in your clients, showcasing your commitment to professional and responsible business practices.
Understanding Different Types of Contractor Insurance encompasses several policies, each designed to address specific risks associated with construction work.
What Other Forms of Insurance are Most Common for Contractors?
Workers’ Compensation Insurance: Mandatory in California, this insurance covers medical costs and lost wages for injured employees. It’s vital for protecting your workforce and complying with state laws.
Commercial Auto Insurance: If your business uses vehicles, this policy covers damages from accidents, theft, and vandalism. It’s essential for contractors who rely on transportation for their operations.
Tools and Equipment Coverage: This insurance protects your investment in tools and machinery from theft, damage, or loss. It’s a must-have for contractors whose operations depend on specialized equipment.
Professional Liability Insurance: Errors and Omissions (E&O) insurance covers legal fees and damages if you’re sued for professional mistakes or negligence.
What Are Common Examples of How Insurance Can Protect Contractors?
Accidental Property Damage
John’s Construction Co., a small San Diego contracting firm, was hired for a home renovation project. During the renovation, one of the employees accidentally damaged an expensive antique vase, a family heirloom of the homeowner.
The homeowner filed a claim against John’s Construction Co. for the value of the vase. Fortunately, the company had a comprehensive general liability insurance policy that covered property damage. The insurance company assessed the claim, valued the vase, and compensated the homeowner for the loss.
This example highlights the importance of having property damage coverage as part of a general liability insurance policy. It protected John’s Construction Co. from a potentially significant out-of-pocket expense and maintained its good relationship with the client.
Slip and Fall Incident
Lopez Roofing, a Los Angeles roofing contractor, was working on a residential roofing project when a homeowner slipped and fell on a piece of equipment left on the property. The homeowner suffered a severe injury that required medical attention.
The homeowner sued Lopez Roofing for bodily injury. Lopez Roofing’s general liability insurance policy covered bodily injuries from their business operations. The insurance provider handled the legal proceedings and covered the medical expenses incurred by the homeowner, as well as the legal fees.
This incident underscores the necessity of bodily injury liability insurance in the construction industry. The general liability insurance not only covered the medical and legal costs but also helped Lopez Roofing safeguard its business reputation.
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Secure Your Business Today
Don’t leave your business exposed to unforeseen risks. Contact our licensed specialists to ensure your contractors general liability insurance and contractor license bond is tailored to your specific needs.
Call us at (888) 770-5834 for a no-obligation, free quote, and secure the right coverage at the right price. Whether you’re a seasoned contractor or just starting, we’re here to provide the protection you need.