Are you looking for contractor insurance? These policies and levels can vary between insurers, so it is important to consider all options when choosing the right one.
Contractor insurance is designed to protect you, your clients, employees, and equipment from the hefty costs of accidents, equipment damage, or other damages. You should ask a few questions about the policy’s terms and legal requirements to determine which insurance policy is best.
These are the three most important questions to ask when you’re looking for contractor insurance.
1. Does it cover damage?
Before you purchase contractor insurance, ask whether the policy covers damages. Even the most careful professionals are subject to accidents.
Even though general liability isn’t a requirement imposed by most state laws, it is still a smart choice for any business. If any of your employees causes accidental damage to customer property in the course of their job, you’ll be held responsible for all legal costs and fees.
General liability coverage is designed to cover legal defense costs and repair costs for third-party damages. Even if there is no accident, it can help your business to show professionalism to clients. Clients are more likely to trust your company if you inform them that they are covered.
A proof of insurance is also a sign that your company is looking out for clients’ needs as well as your own. This page is important. WebsiteTo understand the insurance requirements of contractors in California. Customers also wish to see proof of license, as it further proves contractors’ reliability and reputation. The state board issues a license after passing an exam. Each year, continuing credits are required.
Being licensed means that you are able to keep up with the latest code and best practices in your industry. Because trends change quickly, it’s important to stay current with the industry. Clients may also request that your license be applicable to specific types of projects.
2. Do you need workers’ compensation if working alone?
Another question to ask before purchasing contractor insurance is whether you need workers’ compensation if working alone. In some states, workers’ compensation insurance is mandatory. For example, California law obliges all employers to carry such insurance even if they don’t have more than one employee.
The only way for California contractors to obtain or reactivate their licenses is by providing a valid certificate of workers’ compensation coverage. Even if your business is not owned by you, you might still need to provide such a certificate.
The California State Licensing Board obliges roofing licensees to carry a workers’ compensation certificate or have valid self-insurance, regardless of whether they have employees.
Roofers and electricians who are self-employed must have insurance to cover any injuries or medical expenses. It is essential to protect your business from the worst.
Imagine being unable to work because of medical bills. You must also pay for medical bills for your employees who are injured in an accident.
3. What kind of contractor coverage do you need to insure your work truck?
Before you purchase contractor insurance, ask yourself the following question: What type of policy do I need for my work truck?
All vehicles used for contracting work such as transporting employees, equipment, and tools, must have commercial auto insurance. Keep in mind that personal auto policies don’t cover the vehicles used for carrying out contracting business.
Many businesses use vehicles to transport heavy and costly equipment. Some vehicles are even modified to suit the needs contractors. The vehicles are therefore part of the equipment.
Commercial auto coverage is required if your business has a fleet of vehicles, and if any of these vehicles are registered under your company’s name.
Summarising: Questions to ask when buying contractor insurance
These questions will help you make better decisions. Get the best insurance that protects every aspect of your business.
