Buy California Contractors Insurance If You Want To Bid Competitively

By Jean Gonzalez

Bidding on construction jobs is very competitive. There can be a significant amount of money at stake. If you want to be a contender for legitimate jobs, there are certain requirements you must meet. It is not enough to come in as the lowest bidder with years of experience. California project managers will expect to see all the required certifications and licenses. You'll be required to Buy California Contractors Insurance and describe the type of coverage you currently have.

Sometimes a contractor will try to cut corners by keeping as little insurance as legally required, or let it lapse with things are tight. This is a terrible idea because something unexpected always happens at the worst possible time. If you are held responsible for a job that went wrong, you could face financial ruin without adequate coverage. As long as you are adequately insured, you will have protection from equipment theft or damage, worker injuries, and even loss of office supplies due to a break in.

All businesses should have a standard business owner policy. This will cover general liability, business property and business interruption. If you have company vehicles, you will need a policy covering them. Owners who have workers driving their private vehicles for your business purposes need to have coverage under a non-owned clause in your auto policy.

Costly tools and heavy equipment are necessary for most construction companies. You don't want to be forced to pay personally for their replacement if they are stolen or damaged. Leased equipment needs coverage as well. If a rented piece of equipment is damaged while in your possession, you may end up paying to have it repaired or replaced.

Errors and omissions insurance is necessary for most businesses. This guards you against personal liability for any errors, omissions, or negligence that might occur during construction projects. Having an employee dishonesty policy in place will protect you if a crew member steals something from a job site. This kind of coverage generally pays for the cost of replacing the item.

If you employ workers, the state you work in probably requires that you carry workers' compensation insurance. This is the coverage you will need if one of your workers is injured and needs medical attention. It also pays a portion of the worker's wages until the person is well enough to return to work. You can purchase umbrella liability coverage. This policy will kick in if your claims exceed the monetary limits of your other policies.

The more you can do to prove to the insurers that you are unlikely to file a claim, the cheaper your insurance will be. You can install GPS tracking devices on your vehicles and machinery for better security and recovery. You should consider security systems at your business to deter thieves. You definitely need to bundle your policies wherever possible. All of these measures should help reduce your costs.

There is a lot of money to be made in the construction business. In order to win bids, and protect yourself, you must have good insurance policies in place. If you do not, you won't be awarded bids, and a misstep could ruin you financially.

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