California is different than working construction in any other state because the laws vary from state to state. If you work in this field it is important to know the laws in California specifically workers compensation requirements and general liability requirements. Any general liability insurance in California should be specific to the state.
If you are a licensed contractor, you are already familiar with the Contractors state license board, the state department which oversees contractor licensing and laws. This agency approves changes to contractor classifications, oversees application fees, looks into grievance claims, suspends and revokes licenses and seeks damages against licensed and unlicensed contractors on behalf of consumers. Lawmakers have set up regulations on insurance and this agency makes sure they are followed.
Problems in construction are bound to come up, accidents happen every day, and insurance is vital. If you want to get a contract with the state, be prepared to get a very comprehensive insurance policy with high policy limits.
Here are a few tips for finding the right general liability insurance in California:
1. Know how much you need depending on the scope of your work. If you are a builder and your primary business is roofing single family homes, you take on the same liability every time you work, you will most likely need similar coverage for every job.
2. Talk to someone, don’t buy online. Getting quotes or finding out about the different insurance businesses in your area is fine, but never purchase until you’ve talked to the company yourself.
3. Get multiple quotes, a minimum of three. One benefit in talking to different insurance agents will really help you understand the coverage you need. Some agents know more than others and you will learn about the industry by talking to many of them. It should also give you a good idea of how much it should cost.
4. Make sure the company is approved by the California Department of Insurance. Also make sure that the insurance company is bonded. Look at the better business bureau for complaints and try to find reviews from other contractors on how they handled their claims.
5, Know how and when they pay. Some insurance will reimburse costs for smaller items after they have been paid and the claim has been approved.
6. Go through your policy line by line with your agent. Pay special attention to what is NOT included.
7. Make sure the general liability insurance in California is customized for the state.
8. If a policy is a lot less expensive than other quotes, be suspicious and find out how the policy is different from the other quotes
Insurance policies are complex documents, policies are filled with legalese and it’s important to make sure that you have the right coverage.
