Buy California Contractors Insurance If You Want To Bid Competitively

By Brenda Hathaway

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.

A standard business owner policy is a must for every business. This covers general liability, business interruption, and business property. When you own company cars and trucks, you need a commercial auto policy. Workers who drive their personal vehicles for your business purposes should have coverage in your commercial auto policy under a non-owned clause.

Most construction companies own or rent extremely expensive heavy equipment. It has to be covered against theft and damage. When you making payments on your equipment, the lender will require the coverage. When you are renting or leasing, the lessor will require it. Without adequate coverage you would be responsible for replacing or repairing the equipment yourself.

You must have errors and omissions coverage. This policy will cover errors, omissions, or negligence for which you are deemed responsible during the course of a job. Unfortunately, not all workers are honest. It is a good idea to protect yourself with an employee dishonesty policy. That way, if one of your crew removes something from a site illegally, the replacement cost will be covered.

If you have employees, you must have workers' compensation insurance. This covers workers who get hurt on the job. It will pay their medical expenses and for some of the worker's wage until he is able to return to work. Umbrella liability coverage is always a good idea. This policy kicks in once you've exhausted the limits of the 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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