What Does California Contractors Liability Insurance Cover?


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When someone mentions the word “insurance” most of us think of traveling. Oh, you could say, that’s when you go to the agency to take care of that little thing that you don’t need but have to pay for. In fact, nothing could be further from the truth. No matter where you go, dangers lurk around every corner, and protecting yourself financially is the backbone of a safe and enjoyable trip.

The same principle applies to construction sites. Namely, contractors are required to protect any project including equipment, labor, materials and all other things that play a role. Being the victim of a weather disaster or a major theft can put you at a great disadvantage. In addition, it will make you look very unprofessional in the eyes of the client.

Environmental concerns

We would go so far as to say that protecting the environment is just as important, if not more, than the construction itself. Think about it: buildings are temporary. You can build a house today and tear it down tomorrow; the Earth will not stop to meditate on your actions. But damage to nature can be irreversible, so we must collectively do our best to preserve it for obvious reasons.

Construction involves many risks for the environment of your project. It could be toxic fumes, or it could be soil erosion or something. Unfortunately, many contractors ignore these negative impacts and only care about the success of their jobs. The consequences could appear years later and affect the local population long after the end of work.

Now, as an entrepreneur, you need to know which policy covers what, so that no risk is left uncovered. Pollution accidents are not covered by the general liability insurance policy; that means you need special pollution insurance in addition to builder risk, workers’ compensation, and other policies essential for any construction business.

It covers property damage, bodily injury, cleaning costs and other potential dangers to third parties. Imagine a project that requires a lot of soldering. This process releases many toxic gases, such as argon, carbon monoxide, carbon dioxide and many more. Residents could sue and win the case easily, as these gases pose a real threat to health. Pollution liability insurance is there to protect you and protect you against these claims.

Workers compensation

In addition to keeping the environment in order, the top priority of an entrepreneur is to provide insurance for his workers. Some construction sites involve high risk operations and can lead to injury and illness. This type of insurance is based on a contract between management and staff: if the first takes out work-related accident insurance, the second cannot sue them for injuries sustained on the site.

In this way, workers are protected in all segments: loss of wages, hospital costs, rehabilitation costs or even death benefits to families in the event of death. If the company does not deal with it in time, legal action can ensue and the contractor could be taken out of thousands of dollars, putting the future of the entire project in jeopardy.

Moreover, it is not just a whim of a worker to annoy his entrepreneur. Most states require workers’ compensation coverage from construction companies. You can get a quote here and find other useful information about insurance rules. If contractors don’t comply, they could face stiff penalties such as huge fines or jail time. Finally, they could forever lose the right to carry out construction work in that particular state.

Commercial auto insurance

Any business that includes transportation in its work should cover this policy. What does this mean exactly? Essentially, it’s about naming your vehicle in the name of your business. This way there will be no gaps in coverage and you will not suffer any legal repercussions.

There are a few things you should know about commercial auto insurance. Namely, the only vehicles that require the police are those intended for road use, that is to say outside your site. Cars, trucks and even larger machinery like cement and dump trucks or trailers fall into this category. If the vehicle stays put, it does not need coverage.

Other types of contractors ‘insurance include inland navigation, contractors’ bonds, cyber protection, etc. Neither is more important than the other: these are all essential elements that ensure maximum safety and compliance for your construction business.

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