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Insurance Coverage for California Contractors

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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.