Ultimate Guide to California Contractors Insurance in 2022

CIOReview IndiaTeam | Monday, 07 March 2022, 09:48 IST

When you first establish your business, you probably won’t think too much about getting properly insured. That idea will, however, pop up in your head rather soon, because it is definitely a necessary task that you need to complete if you want to protect your business against all kinds of different things and ensure that it will stay afloat even if something unexpected happens. Every single contractor has to have proper coverage and you are not an exception. Plus, if you’re based in California, then there are some insurance types that will actually be a requirement instead of an option.

Given that you are here, I believe it’s safe to say that you have started thinking more carefully about California contractors’ insurance. Before you resort to actually getting it, you want to do some learning and get a better idea about what it really is, whether you need it, and of course, how to get it. Those are all some important questions and I’ll provide you with the answers in this short, but comprehensive, guide to this type of coverage in 2022. So, let us start the learning process.

What Is It?

Unsurprisingly, the first thing we need to do is help you understand what this really is because there’s no point in going any further if you don’t even know what you are dealing with. In plain words, general liability insurance exists to protect you against third-party claims of property damage or bodily injury. Construction workers, carpenters roofers and general contractors all need to carry this type of insurance if they want to protect themselves against those claims. Of course, carrying it can sometimes even be required by the law.

In addition to covering bodily injury and property damage, this type of insurance also covers personal and advertising injuries, as well as completed operations liability. If you think about it carefully, you will realize that policies like these were created specifically to protect you against any types of claims that come your way, as well as to help you cover the necessary legal costs and court-ordered damages. I suppose you do understand how important all of that is.

Do You Need It?

Let us now move on to the next question. You are most likely wondering whether you need to get this type of insurance, or if you could perhaps go without it. Well, among other things, this depends on where it is that you are located since this is a requirement in certain states, including California. So, make sure to check the laws in your specific state if it isn’t California, with the aim of understanding what you have to do.

Now, even when this isn’t a requirement, it is definitely a good thing for you. To say it differently, even if the law in your state does not require it, you should still get general liability insurance. We have made it clear that it can protect you against all kinds of different claims and damages, and you should be aware of the fact that your business will face some of those at some point, no matter how careful you and your workers all are. Things happen and you need to be protected when they do, which is why getting this coverage is a rather smart idea.

How To Get It?

The last question that’s swirling around your mind is this. How can you actually get the perfect general liability coverage for you? Well, there is absolutely no denying the fact that there are a lot of providers on the market nowadays and that most of them will be ready to offer their policies, while claiming that those are the best. Nevertheless, you understand that not all of those can be the best and that some are better than others.

This further means that you should devote some attention to choosing the perfect provider and, thus, the perfect policy for you. Make sure to thoroughly research the companies by checking their reputation among other things, and don’t forget to read the offered policies in detail before making any final decisions. Basically, you should check everything that is offered to you and then take some time to compare those offers and choose the best one.