If you are a contractor in California, you know there are events in both life and business you can’t prevent. These events can cause damage to your work site or your workers – no amount of preparation could have stopped them. However, as a contractor, you can make sure you are protected with California contractor insurance through TCS Insurance Brokers. This is one of the first steps to take is order to establish the surety of your business. Because without the proper contractor’s insurance, you may be setting yourself up for unforeseen obstacles in the future.
Contractor’s insurance, also known as construction insurance, is a moving target as the laws change and even the contractor’s themselves evolve into new and different services. In today’s litigious environment, contractors are finding it difficult to be successful with the increased rick of lawsuits as well as the increased costs of quality contractor’s liability insurance and quality labor.
We realized that an independent insurance broker could neither understand their contractor’s client needs nor stay current on their ever changing exposure without specializing in insuring contractors. Having the right insurance broker is key to the success of any contractor’s business. That’s why TCS contractor’s insurance has a dedicated and focused approach to meeting the needs of every California construction business and contractors we insure. Many of our contractor liability insurance policies are as low as $500 per year.
What Is Covered, What Is Not
Contractor insurance generally has three parts to it, a schedule to cover you, a schedule to cover the company or person you are contracted to and a schedule to cover any member of the public affected directly by your work as a contractor. In each of the categories, there is a full protection option available from TCS Insurance against accidental damage caused to equipment and property and full liability protection covering medical, legal and compensation costs. Contractor insurance typically will not cover negligent acts or errors that are deliberate. Nor will they provide extended coverage if you demonstrate a pattern of consistent, negligent behavior. Other than those two major exclusions, contractor insurance is typically very comprehensive as it gives you and the company that has offered you the contract, a safety net that otherwise would not be available.
Specific Contractor Liability Insurance Coverage’s
Contractor general liability insurance goes by many different names, but serves the one purpose of providing coverage that fits a specific need. Here are some common types of coverage:
- General contractor insurance – As a general contractor, you take the lead on construction projects, making you the prime target should something go wrong. Holding a general contractor liability insurance policy is a critical part of being a responsible party, and is mandatory if you wish to be awarded construction contracts.
- Subcontractor insurance – Subcontractor liability insurance is no different than general contractor’s liability insurance, in that it provides coverage for construction professionals. Subcontractors cannot rely on piggybacking on the general contractor’s policy, so they need to have, and are often times contractually required to carry, their own policy.
- Electrical contractor insurance – As an electrician, you are responsible for properly wiring residential and commercial buildings, where the margin of error is slim and the liability potential great. Carrying the right coverage is vital and a requirement in order to be able to work in this industry.
- Handyman insurance – As a handyman, you might not be a licensed contractor, but you are still responsible for doing all sorts of smaller, residential construction projects. This means your liability exposure can be great, necessitating a handyman insurance policy that provides the liability and property protection you desperately need.
Other Construction Insurance Considerations
Having a construction general liability insurance policy is a given, but what other types of coverage should you consider? Depending on what your business does, and what type of exposures it has, coverage’s will vary from the basic to specialized policies tailored for a specific need. Some policy examples are:
- Surety Bonds – As a contractor, you are often times required to have a surety bond to ensure you perform, per the contractual requirements. If you fail to perform, then the surety bond provider will make a payout to your client, covering their financial losses up to the bond limit.
- Commercial Auto Insurance – If you have work vehicles you use in your construction business, you need a commercial automobile policy. A personal automobile policy will not cover your commercial use vehicles, so a commercial auto insurance policy is required.
- Workers Compensation – If you have a certain number of employees, then most states will require you to carry workers compensation insurance coverage. This pays for employees who are injured on the job. There are some exceptions that allow certain companies to not carry this type of policy, but most companies with employees need workers compensation coverage.
The above examples of commercial insurance are just some of the many types of coverage’s available. The bottom line is that TCS Insurance will make sure your business and your employees are protected.
California Business/Commercial Insurance TCS Insurance Brokers Provides
In addition to Contractors Insurance, you can rely on TCS Insurance for other insurance related to your business:
*Information on some items listed above may not be on our website. Please call for more details. *
© 2014 Domingo Ramos Total Client Satisfaction Insurance Brokers 894 W. 11th. St. | Tracy, CA 95376 Questions? Call (209) 207-0577 or (866) 968-8393