April 13, 2020
Contractor insurance is a set of plans, approaches, or strategies which safeguard contractors from uncertainties they are likely to face in the course of their business dealings. These uncertainties arise from losses in assets, finances, lives, and health. This is why contractors should protect their businesses with insurance. It ensures that they don’t incur the costs of losses directly, which are related to injuries, losses, and damages.
Insurance helps contractors pay for property damage and injuries to workers or third party persons hence the need to have California contractors insurance. It protects and covers contractors in California from direct liability when risks occur.
How can one access California contractor’s insurance and the plans available?
Contractor insurance is not only a requirement as per the law but vital in securing projects from clients. Every contractor should ensure his or her business is well shielded against the uncertainty that’s why contractors should protect their business with insurance. Even though insurance providers don’t offer a plan wholly referred to as contractor insurance, they offer individual plans at subsidized rates. These rates are packaged in what is called Business Owner’s Policy abbreviated as BOP. California contractor’s insurance plans available to contractors include:
General Liability Insurance PlansIt’s, also referred to as business liability insurance. This plan safeguards contractors and insures them against expenses like fees to attorneys and medical covers arising from losses and damages that the businesses may be responsible for legally. These are losses and costs related to the services and products offered. This plan doesn’t cater for injuries to workers or mistakes arising from auto or mechanical damages. It also guards against liability in case of damage done on property leased or owned.
Workers Compensation Insurance
California contractor’s insurance ensures that workers and employees of businesses are provided with wage and medical benefits resulting from the course of their employment tenure. This plan will help carter to disabilities, health, suffering, and general damages employees may be exposed to.
Commercial Auto Insurance
This plan provides covers for damages, vandalism, theft, and funds medical fees related to vehicles a business owns. It covers the company from direct liability in case the business vehicles cause accidents or injure someone while in motion or stationary. It’s essential as it covers third party damages, medical bills, collisions, and uninsured drivers. It doesn’t however, workers who use their private vehicles for business duties, items carried by particular cars, or vehicles hired.
Builders risk insurance
This plan is when a contractor is doing construction work; it’s essential to have this plan. It covers the building under construction. Structures are exposed to uncertainties during their construction periods like fires, hurricanes, and vandalism or strong winds, among many more risks. This is why contractors need to protect their business with insurance that will cover them from such losses and damages.
This plan doesn’t cover for accidents or damages and injuries at the site. It ends or gets terminated on the completion of the work on-site or on the dateline the construction was supposed to be completed. Contractor bonds protect the business against inconveniences and financial strains when a contractor fails to finish a particular business project as the time-frame specified.
When a contract bond has submitted the on-site contractor states that the project will be completed within the contract period as agreed with the business owner another reason why contractors should protect their businesses with insurance as this plan will ensure that they are protected and covered in case subcontractors, and suppliers fail on their part. A contractor is mandated to have construction bonds at his or her disposal before being awarded any project of construction. In case a contractor does not complete the project within the time specified in the contract, the insurance provider will be liable for the damages caused.
Having a contractor’s insurance will enable one to operate and get projects in California with ease. It keeps it operational by saving on expenses that would instead be used to cover injuries costs or damage costs like vandalism of assets, injuries to your workers, or financial losses as a result of undependable suppliers. This is why contractors should protect their business with insurance as it will give them the peace they require of mind for their long term achievements.