Contractors Insurance

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Contractors Insurance

California contractors’ insurance can be confusing; that’s why Stampede Insurance is here to assist you in selecting the right coverage for your business. We offer access to many companies to find you the best possible coverage at a price you can afford.

Stampede Insurance Services specializes in providing contractors general liability insurance and other coverages vital to this line of work, including builders’ risk insurance, commercial auto coverage, and insurance for tools and equipment.

Choose Stampede Insurance

Contractors face unique and often dangerous risks every day on the job. The type of contracting business you own and its size and location will affect what kind of insurance you may need.

With several years of experience in the construction insurance industry, we’ll leverage our expert knowledge to evaluate your risk and solve the coverage needs of your construction company.

We understand the risks contractors face and have developed commercial insurance solutions to help meet your varied needs such as general liability, property, inland marine, workers’ compensation, auto, umbrella, surety, and fidelity.

Contractor liability insurance can help protect your business when something unexpected occurs. This includes protection for your business’s assets and employees.

Contractor liability coverage offers you peace of mind as you’ll have coverage when your business faces a lawsuit or covered loss.

A lot goes into contractors’ insurance, so it’s important to understand the best types of insurance coverage for contractors. The right coverage ensures you can protect your business and your employees.

Policies Required For Contractors In California

Depending on the specifics of your work, general contractors may be required to hold several different types of business insurance. For instance, if your business owns a vehicle, you’ll need to purchase commercial auto insurance to meet state requirements.

If you have a physical location with a commercial lease, your property manager may require you to purchase general liability insurance. To meet state requirements in California, general contractors with employees must provide workers’ compensation insurance, which covers lost wages and medical bills for work injuries.

Depending on your clients and the type of work you do, you may also need builder’s risk insurance or surety bonds.

Most Common Policies Offered

General contractors may need different types of insurance depending on the work they do and their client contracts. In California, general contractors often buy these policies.

Commonly purchased by general contractors in California, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.

General Liability Insurance

General liability insurance is the foundation of a general contractor’s protection. It covers damage to client property, as well as client injuries. Most commercial leases require you to have this coverage.

This liability insurance will protect you from most claims that would arise from your day-to-day activities. This includes the activity of running a business and the type of accidents that would occur at a job site.

Bundle this policy with commercial property insurance in a business owner’s policy (BOP) for savings. Adding commercial umbrella insurance can increase your coverage on general liability insurance and other policies.

California Workers’ Compensation

If you own a construction or home improvement business in California with one or more employees, your business is required to carry workers’ compensation insurance. Workers’ compensation can help pay for medical bills and lost wages when an employee is injured on the job.

Contractors are responsible for providing this coverage for employees but may also have the exposure because of subcontractors who have not provided workers’ compensation insurance for their employees.

This exposure can be avoided by insisting that subcontractors carry appropriate workers’ compensation insurance.

Commercial Auto Insurance

Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.

Personal auto policies exclude autos used for Commercial and Business purposes and would therefore require coverage on a policy designed for such use. If you use your automobile in business, be sure you have the right policy and coverage is not excluded.

Contractor’s Tools and Equipment Insurance

The contractor’s tools and equipment insurance protects a general contractor’s saws, nail guns, drills, and other construction equipment. Look to this policy or inland marine insurance to protect equipment that moves from place to place.

Hand tools are normally covered on a blanket basis with no list or schedule. No item can exceed $500 in value. Equipment Insurance will protect your larger tools and equipment such as welders, generators, nail guns, and other expensive portable equipment.

Professional Liability Insurance

Professional liability insurance provides protection when a general contractor is sued for a professional mistake, such as missing a deadline on a construction project. This policy may also be called errors and omissions insurance (E&O).

Surety Bonds

Surety bonds guarantee reimbursement for the client if a general contractor cannot fulfill the terms of a contract. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.

Builder’s Risk Insurance

Builder’s risk insurance may cover fires, vandalism, equipment theft, and other damages done to a structure still under construction.

Physical damage insurance for property under construction. Lenders will require it before issuing construction financing. They will usually require this coverage before funding remodeling projects as well and some policies can be endorsed to include the structure being remodeled also.

Contractors Insurance Cost

The typical general contractor in California can expect to pay more than the national median for some types of business insurance but less for other types. The median annual cost of commercial auto insurance for general contractors in California is $1,717, significantly less than the national median of $2,417.

The median annual premium for a business owner’s policy is just $525, almost half the national median premium. However, general contractors in California can expect to pay more for general liability insurance and surety bonds.

General Liability Insurance Cost

Similar to the cost of general business insurance, the cost of general liability insurance will vary based on a variety of factors, including:

  • Business location
  • Previous claims history
  • Business size
  • Policy limits

Contractors and construction companies pay a median premium of less than $70 per month, or $825 per year, for general liability insurance. Higher-risk businesses, like roofers, pay more for general liability insurance than lower-risk companies like paving contractors and locksmiths.

The best way to get a sense of how much a policy will cost is to get a customized quote for your business.

Save Time And Money With Stampede Insurance Experts

Stampede Insurance’s extensive knowledge helps general contractors in California save time and money shopping for insurance by comparing policies from top U.S. providers.

Start a free online quote to review policies that best fit your business. Our insurance agents are licensed in California and can answer your questions as you consider coverage.

To make the application go quicker, have this information ready:

  • Workforce details, such as the number and types of employees
  • Current and projected revenue
  • Business partnerships
  • Insurance history and prior claims
  • Commercial lease insurance requirements

Protection For Every Budget

Every business is different and commercial insurance solutions for contractors can range from a basic policy to a thorough mix of coverages. The type of contracting business you own, size, number of employees, and type of work all impact the types of protection you may need.

We understand you need to stay focused on business and not the risks you face every day. We work with multiple trusted companies to find you the best coverage at the most affordable price.

At Stampede Insurance Services, we have the contractor’s specialists to understand your risks and develop insurance solutions to fit your industry’s needs. We offer customized coverage in the following:

Contact us to find out more about your contractor’s insurance in Pasadena, California including the Anaheim, Long Beach, Los Angeles, Riverside, and San Bernardino areas as well as these states: Alabama, Arizona, California, Florida, Kansas, Kentucky, Louisiana, Mississippi, New Mexico, Nevada, Oklahoma, and Texas.

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