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All Posts By Jeffrey Watson

Why You Must Obtain a Contractor’s Bond and Insurance Policy

The things that can potentially go wrong on a job site are very numerous. Seasoned contractors well aware of this insure against such risks. Such covers include protection against possible workman’s compensation claims, injuries to non-employees, malfunctioning of manufacturing equipment to mention but a few.

Due to this wide range of potential risks, many states have legislation that requires contractors to acquire some form of insurance against these and other potential litigation probabilities.

That said, whenever one goes to look for an insurance product that fits their need, it can be a complicated process rife with the possibility of winding up with insurance that may not be the appropriate one for your business needs. To avoid such risks, it is important for one to make sure that they seek out contractor’s insurance quotes and purchase coverage before sealing a contract.

In a nutshell, a company that employs hundreds of workers and subcontractors has wider insurance needs as compared to a small company. This aspect brings out the fact that insurance is not a one size fits all proposition. To ensure that you get the correct coverage at an affordable price, it is advisable that you get a broad range of insurance quotes as early as possible.


General Liability Insurance and Contractor’s License Bonds

If your needs entail a large contracting service, it is possible that you are going to require multiple insurance policies or a policy that covers different aspects of the day to day operations of your business. We highly suggest having  proper insurance coverage and contractor bonding in place from Speak with a specialist to determin an accurate cost of bonding.  Some of these operations that you may need to take out insurance for include insurance for employees, materials, personal injury suits and another potential “at risk” areas. In insurance, there are many esoteric headings such as:

Premises and operations risks

Such risks entail, the potential mishaps that could occur at a customer’s location or another job site, possible injuries not only to employees and other individuals near the job site but also damages to property, materials or other existing structures near where the work is being carried out. Good insurance policies will provide cover for all such risks.

Products and completed operations risks

These risks cover injuries or property damage associated even tenuously with materials or construction completed or underway at a site.

With such a wide variety of options to consider, it is advisable that you set up a meeting with more than one reputable insurance agent as you will have a better idea of choosing the right policy if you have several contractors insurance quotes.

Insurance Coverage for California Contractors


Running a construction company and developing projects into masterpieces takes meticulous planning, the right tools and machinery, and plenty of skilled workers to get the job done.

Starting your construction company is a very exciting venture. But one thing contractors often forget about when getting started is purchasing contractors insurance. Although some states require certain amounts of insurance and others do not, here is a rundown of the types of contractors insurance every construction company should have.

Below are insurance coverage for California contractors:

Contractors Insurance and Surety Bonds

Sometimes referred to as construction Insurance, Commercial General Liability (CGL) insurance was developed to provide protection to businesses for expenses of injuries to others and property damage. In many states, CGL coverage is normally required before a contractor bid for a particular job. Contractors in California must disclose to homeowners whether or not they carry general liability contractors insurance. On the other hand they are required by the CSLB to carry a contractors license bond in order to maintain an active license.  Other states require this coverage by law. Even if it isn’t needed in your state, operating a business without this protection is risky.

Commercial Auto Insurance

Commercial auto insurance coverage is very similar to personal auto insurance. It covers any cars, SUVs, vans, or trucks used for business, including trailers, tractors, tow trucks, dump trucks, garbage trucks, and semi trucks. Even if none of your vehicles are owned under your company’s name and you still need commercial auto insurance that covers your employees if they ever use their own or rented vehicles for business purposes.

Workman’s Compensation Insurance

In most states, failure to carry workman’s comp insurance is a criminal offense – even if you have just one employee, you must maintain workers’ compensation coverage. The importance of workman’s comp cannot be overstated. Protecting your employees with workman’s compensation insurance is important because as an employer, you are held liable for the occupational injury, sickness, or death suffered by anyone you hire.

Equipment and Tool Coverage

Although the law will never require equipment and tool coverage, you should purchase this if you own expensive tools and equipment. Contractors Equipment Insurance usually covers your contractor’s equipment and tools which leave your business and taken to the job site. Coverage is given to protect against dangers such as theft, fire, vandalism, windstorm and more. At any location. So, this policy is often called a “floater policy” because the coverage normally follows the equipment as it moves around in your car or from one job site to the other.

When it comes to insurance for a construction project, the main thing you are required to have is employee liability insurance. Anything else is a bonus. The only problem is a lot of companies bypass all these other avenues until they learn the hard way. You have to remember that insurance is all about the “what if” factor. If something does happen, you want to be prepared, and having the right insurance for each construction site will be crucial to your overall success

These are the general policies that every contractor should have at all times. If you have more questions regarding your specific needs, it’s always suggested that you call a dedicated contractor’s insurance company that will customize an insurance package for your requirements.

Why Every Builder Needs Liability Insurance

Insurance is protection against any unforeseen circumstances that may arise in the future. Builders are offered with different types of insurance to protect them in different occurrences that may face them in the construction process. One of the insurance covers that every builder needs is liability insurance. This insurance protects the builder, who is the insured, in respect to legal liability to third parties for property damage, and bodily injury that may happen in connection to the business.  Here is an overview of liability insurance and why you need it.

Liability for Employees

Builders need liability insurance because they have employees who are a risk to them. The workers need to be covered so that in case of injuries or death as a result of the construction work they can get compensated. This is covered under builder-employer liability insurance. The employees will not pursue you for compensation in case of injuries, instead they will launch a claim with the insurance company.

Public Liability

There are different parties who are considered externalities in any construction work. We will have people nearby, animals, and probably other buildings. All these are a risky to your construction work. Therefore, you need public liability insurance so that anything that may happen to them as a result of negligence in your work may be catered for by insurance.

Builders need liability insurance so that they can have peace of mind. There are many risks posed to third parties more so the employees a builder contracts. Therefore, liability insurance reduces the worry and risk of your business as a builder.

Legal Requirements

In many companies that are hiring builders, it is a requirement for them to have liability insurance. They understand what liability insurance can do. Therefore, if you need to develop competitive edges against other builders you will need to get liability insurance.

Many builders are not big enough to compensate third parties in case of damage to property or injuries. If they do the compensation they may incur losses that they will never recover. When you are the one to indemnify for damages to third party property, you will have to incur other expenses hiring lawyers, witness fees, and court expenses. Besides, this may waste your time that you could have invested in other construction contracts.

If you are a builder, liability insurance is a mandatory aspect in your business. You will need to engage experts in the field so that you can get the best cover. Besides, you will need to consider the rates offered by different insurance companies.

A Guide to Construction Insurances

In every single construction project, insurances is needed and in many cases before you ever win a bid or a tender you will have to provide proof of insurance. Construction insurance can provider material coverage to the employees, risks, your own business and even to the natural disasters. The insurance with the construction are always comprehensively looking and providing the latest and unique situation. Therefore to make sure you’re not lost in the below are the most common insurances used in the construction industry

1. Employer Liability Insurance

Basically you should have the Liability insurance which will always protect against the liabilities like the injuries and the illness for the employers.

As an employer, the insurance is compulsory. You may also want to look into liability insurance if you are building your own home as injury to the volunteers and the sub-contractors who may spark a claim against you as the employer.

2. Public Liability Insurance

This liability insurance provides the protection against the liabilities for injuries to the third parties or the non-employees and even their property. Therefore people working near their properties and anyone in your construction, should be highly considered having the public liability insurance in order to ensure all the potential claims for the damaging of the person and even their properties are covering them well

3. Professional indemnity insurance

The insurance insures against the liability that arise from professional negligence, such as the contractual liability which is equivalent to professional negligence, as to exercise breach of a contractual obligation and reasoning skills, care and diligence while designing.  Engineers , architects, and other experienced experts in the field consultants in building contractor who always owes a design responsibility to in maintaining the insurance.

4. Structural warranty

It provides the building owners with a good number of years protecting them from the latent defects with the structure of a building the defections that occur during the building of period but are not always discovered until the completion of the work. Basically this is Structural warranties are usually bought by the developer and builder but the warranty will provide the cover itself for the person purchasing the completed building who is the owner.

5. Latent defects insurance

Basically latent defects insurance also known as decennial insurance is typically lasts for more than ten years from its original construction of the owners building. the owner usually arranges the covering in advance protecting the you against the cost of remedying the building structure as due to this latent defect.