A contractor is in a high-risk kind of job that is faced by challenges which can at times be expensive to compensate. A workplace accident, property damages and being sued over poor workmanship/services can result in a significant amount of money. Contractor insurance is there to save the contractor from having to suffer financially from these claims.
California Contractors insurance just like any other policy is serviced through paying of annual or monthly premiums. The premiums will differ from one policy to another depending on the kind of work involved, risk calculation, location of the business, among many others. Many insurance websites now allow you to pay the premium due online via the carrier’s website.
General Liability Insurance (GL)
This is a policy that covers the contractor when faced with customer’s claims over injury, property damage and/or shoddy workmanship. The insurance can have a premium of $380 to $1,380 depending on the insurance company and the location of the businesses.
Business Owner’s Policy (BOP)
This is for contractors who choose to bundle two policies to have reduced premiums. A BOP consists of a GL and Property Insurance and can cost a premium of $500 – $639. The client covers the lawsuit risks and also has their equipment, tools, and machines protected.
Surety Bond
When a contractor signs up to get a work license, the law requires him/her to get a permit and license bond. A general contractor will need to pay $100 to $300 to get bonded and have licenses
Inland Marine Insurance
A contractor will need to pay $500 to $759 to have a policy that covers their supplies, tools, and equipment when in transit. The cover caters for repair and/or replacement of items that are damaged or stolen when being transported.
Umbrella Insurance
This is a policy that has three policies packaged together. A contractor will pay a premium of $1,010 – $2,020 to have a GL, Employer’s Liability and Hired and Non-Owned Auto.
Workers’ Compensation Insurance
The policy covers employees for medical compensation and loss of wages due to work-related injuries. Independent contractors and subcontracted persons are also included in this policy. A contractor needs to pay a premium of $5,723 to $7,656 to have the employees covered.
Commercial Property Insurance
A contractor can pay a premium of $253 to $1,630 to have this policy cover. Properties and equipment are insured from fire, vandalism, theft and weather tragedies.
Commercial Auto Insurance
This is a policy that will cover a contractor after being injured in an auto-related accident when on work-related duties. a general contractor needs to pay $1,854 to $2,846 to be covered as most auto Insurance policies do not compensate a contractor vehicle on work-related responsibilities.
Conclusion
Contractors insurance is a necessity as accidents do happen even when all safety measures are observed. Contractors need to protect their businesses from a financial crisis that can be resulted from compensation lawsuits.
Factors that make contractors insurance policies to vary include; policy type, business capacity, the industry, location, number of previous claims, and the types of contracts the company has.