Selecting the right type and amount of contractors insurance is essential to protecting your company. Every business needs insurance; but as a contractor, working on high-value projects in risky situations means you'll need a higher value of coverage that's more customized to meet your individual needs. It is always best to work hand-in-hand with an independent insurance agent that specializes in this form of insurance to ensure you have the very best level of coverage.
What Features Matter?
When choosing contractors insurance, it's essential to choose the right level of coverage to meet liability risks. While you also need property insurance and coverage for all of your assets, focus on the liability risks present to your company. Does your business have everything necessary?
Business liability: This type of coverage helps to protect your business from claims and lawsuits filed against it. This may include anything from slips and falls to construction site injuries.
Completed operations: This form of liability insurance helps to provide for bodily injury and property damage claims that occur after the construction project is complete. There are numerous exclusions applied to these coverage levels, though.
When considering the liability coverage present on your current contractors insurance plan, take a look at the claim limit. In most cases, this limit should be as high as possible. Oftentimes, businesses believe that they are not an accident-prone business or they take every safety precaution available. So why do they need to have such a high valued policy?
However, a simple claim against your company can result in thousands of dollars’ worth of losses if it is settled out of court. If an incident involves a fatal accident, on the other hand, these claims can quickly become well into the million dollar level.
Take a few minutes to consider what a liability claim against your business would mean. Not only does this mean your company is financially strained if you do not have enough coverage, but it also reflects poorly on future clients and customers you decide to work with in the future. The results can be catastrophic. However, you can get high-quality contractors insurance that meets all of your needs.
Is your business covered? See a list of agencies that offer contractors insurance California.