California contractors' insurance can be confusing; that's why Stampede Insurance is here to assist you in selecting the right coverage for your small business insurance. We offer access to many companies to find you the best possible coverage at a price you can afford and avoid any lawsuit.
Stampede Insurance Services specializes in providing contractors general liability insurance coverage and other coverages vital to this line of work, including builders' risk coverage, commercial auto coverage, and insurance for tools and equipment.
Contractors face unique and often dangerous risks and injury 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 customers lawsuit or covered loss.
A lot goes into contractors' insurance, so it's important to understand the best types of insurance coverage for contractors. Our agent will provide you with the right coverage to ensure you can protect your business and your employees.
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 coverage or surety bonds.
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 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.
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 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.
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 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 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 policy 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 remodelling projects as well and some policies can be endorsed to include the structure being remodeled also.
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.
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.
Similar to the cost of general business insurance, the cost of general liability insurance will vary based on a variety of factors, including:
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.
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 get your certificate fast as we make the application process goes quicker, have this information ready:
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 and claim 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.
If you are a contractor, then it is likely that you will be required to have public liability insurance. This type of insurance covers the costs of any injury or damage caused by your work and also protects you against claims made by third parties who may suffer harm as a result of your work. It is important to note that this does not cover you for injuries or damages caused by your own negligence.
Business insurance protects your business against a variety of risks, including lawsuits, property damage, equipment breakdown, and even theft. If something happens while you are working, you want someone else to take care of it. You don’t want to worry about paying out of pocket if an employee falls off a roof or gets hit by a car while on his way home from work. And you certainly don’t want your business assets damaged or stolen.
Business insurance covers many different areas of risk, such as liability, property damage, workers compensation, auto, commercial general liability, professional liability, errors & omissions, cyber, and more.
Contractors insurance typically covers business liability exposures, including injury or damage to a client’s property for which your business might be held liable. This is covered by general Liability Insurance, an essential part of most contractors insurance policies.
Contractors insurance can also extend coverage to include your business’s vehicles and employees, depending upon the coverage you select.
Contractors insurance typically covers three types of risks:
1. Business Liability Exposures - These include bodily injury and property damage claims against you arising out of your business operations. Examples include lawsuits brought by customers injured while working on your site, or damages caused by faulty workmanship.
2. General Liability Insurance - This protects your business against losses resulting from accidents involving third parties, including those outside your business premises. For example, it could protect you against legal action taken by someone who slips and falls on your sidewalk.
3. Workers Compensation Coverage - If you employ workers, this type of coverage pays benefits to injured employees.
When you are running a small business, it is important to have the right protection for your company. In this article we will discuss what liability insurance covers and how it can protect your business from financial loss.
What does contractor’s liability cover?
Liability insurance is designed to protect both the client and the contractor in case of any legal action arising out of an accident
A certificate holder is simply the entity that holds the coverage as described on the certificate. For example, you might be a certificate holder for liability insurance, while your landlord is an additional insured because he/she owns the building where you work.
An additional insured is another business that's also listed on your certificate holder's insurance policy, such as a subcontractor. If you're working on a project and your employer hires a general contractor, that person could be both a certificate holder and an additional insured.A certificate holder is simply the entity that holds the coverage as described on the certificate. In most cases, it's the owner or operator of the property. For example, if you're running a construction site, the person signing the contract to build the building is the certificate holder. If you hire subcontractors to do work on the project, those people are the certificate holders.
An additional insured is another business that's also listed on your certificate holder's insurance policy, like a general contractor or supplier. So, if you're working on a large construction project, the general contractor might carry insurance for the entire project. But if you want to add a subcontractor to the list of covered entities, you'll need to purchase separate insurance for each one.
The average price for contractor insurance varies greatly depending on where you live, what type of project you work on, how many people you employ, and whether you work on residential or commercial properties. Here’s a look at some of the factors that affect prices.
Where you live affects the costs of insuring contractors. In general, the rates charged in states like California and New York tend to be higher than those in Texas and Florida. Rates vary widely within each state too. For example, in North Dakota, the average annual premium for a $500,000 policy is about $2,400; in South Carolina it’s about $3,300.
2. Types of Projects
Project types also influence the cost of contractor insurance. If you work primarily on construction sites, you’ll likely pay less than someone whose primary job involves working on office buildings. Likewise, if you work mostly on large-scale industrial projects, you’ll probably pay less than someone who works mainly on small businesses.
3. Number of Employees
Your payroll size influences the cost of contractor insurance because larger companies generally pay more per employee than smaller ones. Companies with fewer than 10 employees typically pay less than those with 50 or more workers.
Business owners are often surprised to learn that business insurance isn't legally required in most states. However, it does help protect against liability claims and lawsuits filed by third parties.
Additionally, many businesses require workers' compensation coverage for employees, meaning that even if no one gets hurt on the job site, there is still a chance that someone could file a claim against the business owner. In some cases, employers must provide workers' comp coverage for injured employees regardless of whether the employer carries commercial general liability (CGL) insurance.
While business insurance doesn't cover everything, it can help pay medical bills, legal fees, and lost wages if someone is injured while working on your property.
General contractor, masonry contractor, concrete contractor, drywall contractor, excavation contractor, paving contractors and permanent yards contractors. Roofers, carpenters, plumbers, whitelists, electricians, painters the list goes on. These are some of the most common tradesmen in the industry. They do work ranging from small projects like painting a house to large scale jobs such as building a skyscraper.
The National Council of Examiners for Engineering & Surveying (NCEES), the national trade association representing engineering and surveying professionals, estimates there are about 4 million licensed engineers and surveyors in the United States. This number includes those working in the construction field.
In addition to licensing requirements, many states require contractors to carry general liability insurance. In fact, it's required in every state except North Dakota.
According to the Insurance Information Institute, "general liability policies protect against claims arising out of operations performed by the insured."
A general liability policy covers property damage, personal injury and advertising injury. Property damage could include things like damaged walls, broken windows and water leaks. Personal injury might mean someone gets hurt while performing a job. Advertising injury covers situations where a customer sues because of false advertising.
In most states, you don’t need workers’ compensation insurance if you are an independent or self- employed contractor. But there are exceptions. For example, you might need coverage if you work under a contract that requires you to provide such insurance. You could also be required to carry workers’ comp if you perform construction work in a state where it’s required.
Workers’ compensation laws vary widely across the United States. To find out whether you need workers’ comp, check with your local government agency or contact a lawyer.
Business owners often overlook liability insurance because it seems like a hassle to buy. But liability insurance protects against lawsuits filed by people injured while working for you. If someone gets hurt on your property, you could be held accountable. And even if no one is harmed, you still want to make sure you are protected.
Liability insurance covers injuries caused by accidents on your premises, including slip and fall incidents, motor vehicle accidents, and others. You must purchase separate policies for each type of risk you face. For example, if you operate a construction site, you might choose to add a commercial general liability policy that covers bodily injury claims and property damage claims related to your work. This policy typically includes limits of $1 million per occurrence and $2 million aggregate limit.
You also need workers' compensation insurance. Workers' comp provides benefits for medical care and lost wages for employees who suffer workplace injuries. In addition to basic workers' comp coverage, many businesses offer additional coverage such as dental, vision, life insurance, disability income protection, and long term disability.
If you run a small business, you probably don't have much money to spend on insurance. However, there are ways to save money without sacrificing coverage. Start by shopping around for quotes online. Compare rates from multiple companies and find out what discounts you qualify for. Then compare those rates to the cost of purchasing insurance separately.