If you are a contractor in California, liability insurance is crucial to the success of your business. In a sue happy world, the only thing standing in between you and bankruptcy is contractor liability insurance. California is a particularly difficult state in which to be a business owner, but finding good insurance is easy if you know what to look for. What should you be looking for when shopping around for contractor liability insurance?
Five Qualities to Look for in a California Contractor Liability Insurance Company and Broker
They are reliable.
While most insurance companies are reliable, there are a few who aren’t. Insurance from a broker that won’t return your calls or a company that won’t pay your claims is as good as having no insurance at all – or even worse because you are paying a hefty bill for this lack of coverage. One good way to identify reliable carriers is to ask other businesses in your field for referrals. You can also check the California Department of Insurance for recommendations.
They know that your business is unique.
Your company will have individual needs that should be thoroughly assessed both throughout the insuring process and while the broker is preparing your risk profile. You will need to think hard about what you need from contractor liability insurance. California carriers offer various minimum liability limits, but you should seriously consider whether you need more than the bare minimum to satisfy contracts you may want to bid on. A basic insurance policy might be enough for small artisan or handyman work but you should feel that your company is adequately covered.
They’ll insure you as well as your client.
Many of your contracts may require specifically that you have a policy covering the client as an additionally insured party. Some companies offer this for free and some offer it for an additional cost. The subject of additional insured status can be a complicated one so ask your agent to specifically review this clause – and any other special wording – in your contract.
They specialize in providing insurance for business contractors in California.
When it comes to contractor liability insurance, California has special laws and regulations. Your insurance broker should be knowledgeable about how these laws apply to your situation as a business contractor. This will ensure your ability to continue doing business in the state while protecting you from any fines and punishments from noncompliance.
They understand the contracting business.
Let’s face it; you don’t have all the time in the world to negotiate insurance rates and play phone tag with your insurance broker. A good insurance agent realizes this and is willing to work around your schedule. Make sure your insurance agent can deliver the caliber of service a busy contractor needs.
Although there are many issues to consider when looking for contractor liability insurance in the state of California once you know what to look for it is easy to narrow down the long list of possibilities. If your insurance broker and carrier have all of these qualities, you will know that you have found the right coverage for you.
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