The Do’s and Don’ts of Buying Contractors General Liability Insurance in California
Do: Shop Around
It’s always common sense to shop around and make sure you get the best deal. To make this process as efficient as possible make sure you have your license number (you can find it at www.cslb.ca.gov) and the year you were licensed handy as well as reasonable estimate of your gross sales, payroll, and sub-costs for the upcoming year. Also knowing what percentage of your operations are involved in what type of work (i.e. home building, electrical, plumbing, etc.) before you start calling will help you make sure that all the rates you compare are for the same thing.
Don’t: Neglect the Deductible
It’s easy to think you’re saving a few dollars on a policy by increasing things like the deductible, but in the long run a high deductible can cause a lot of trouble. Make sure when comparing different agencies and brokers to try to keep the deductible the same or similar so you end with a fair comparison between different insurance companies.
Do: Look into Payment Plans
You don’t always have to pay everything up front when it comes to insurance. Your broker should be able to finance the contractor general liability insurance through an outside premium finance company.
Do: Call Your Insurance Agent BEFORE You Sign a Contract with a Customer
Some customers have special contractual needs when it comes to insurance and it’s always best to know what those requirements will do to the bottom line before putting pen to paper. The cost of California contractor general liability insurance can vary greatly depending on the requirements in your contract.
Don’t: Assume All Brokers & Agents are Similar
Agents and brokers can operate very differently. Some have sales staff on commission, which could mean a little room to bargain with, while others do not. You’ll never know unless you ask. Also many contractors seeking California contractor general liability insurance have found that many low cost carriers don’t want to insure contractors who have worked on a new home tract subdivision any time in the past decade, so it pays to know what the carriers position is on the subject. Their policy extensions, conditions and terms will ultimately have a large effect on the price of the policy.
Do: Find an Insurance Agent that Specializes in Construction Insurance
You wouldn’t advise someone to contract a plumber to do some electrical work, so why would you shop with an insurance agency or broker that doesn’t specialize in California contractor general liability insurance? Make sure to ask what kind of companies they specialize in dealing with to make sure they’ll understand your needs and concerns. |
