All contractors need to have some form of general liability insurance or a bond that protects other people who contract their services or do business with them. Although the law does not mandate this insurance, it is highly recommended because it boosts the contractor’s credibility. Contractors in the state of California likewise can obtain a Santa Ana liability insurance that covers personal or body injury as well as products liability. Other types of insurance for California contractors are listed below:
Business Property Insurance:
This is a very important insurance because it provides protection of the business property as well as inventory of the contracting business. It also offers insurance against theft, damages and loss of use of business. Since this insurance does not cover every area of the business operation, additional specialized policies can be beneficial for all contracting firms.
Bonding Insurance:
Simply referred to as bonding, a Claremont bonding insurance covers losses due to fraud and dishonesty. Businesses that carry this type of insurance are referred to as bonded, and as such they are viewed as credible so other people are not afraid to contract their services because they are protected up to the bonded amount of the contractor.
Construction Equipment Insurance:
Another type of insurance for California contracting businesses is the equipment insurance. Construction businesses sometimes have projects that can take months or even as long as a year to complete. Such instances sometimes warrants that large work equipment be left at the construction site. However, some commercial insurance will not cover tools and equipment that are stored at construction sites.
This makes equipment insurance very essential because it covers the tools and equipment used for conducting business against damage, loss or theft, whether they are stored at the business premises or at construction sites. This insurance can be purchased to provide additional protection of company assets.
Workers Compensation Insurance:
Accidents can happen at construction sites and workers can get injured through no fault of theirs. They may sometimes decide to sue the contractor who owns the business owner for bodily injuries. In such instances, a contracting business that has workers’ compensation insurance will be covered for damages to its employees.
This type of insurance also pays for lost wages and medical bills of employees who suffers bodily injuries while conducting their assigned work duties. Workers sometimes opt for this type of compensation instead of suing their employers for a lump sum.
Published By:
PJO Insurance Brokerage, LLC
By Patrick O' Neill
12532 17th Street
Chino, California 91710
Office: 949-354-0789
Fax: 480-248-7493
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