Why California Contractors Insurance Agents Need To Know Exactly What Their Clients Do

By Jeremy Boone

When the economy is going well, the construction business almost always benefits. People who feel confident about the future are willing to spend their money on new houses and the remodel and expansion of older ones. This encourages newcomers to start building and repair businesses, and those who have been in the business for years to expand. All of these people have to be insured. That opens great opportunities for California Contractors Insurance Agents.

Agents have to understand exactly what the contractor does in order to insure him properly. Handymen, for instance, tend to do smaller, residential repairs and maintenance. You need to know what kinds of services he provides his customers. His answer will help you decide whether a general liability, inland marine, contractor's coverage, or builder's risk policy is appropriate.

The carpentry field is growing in today's economy. This can be a risky business. Most carpenters, whether they are framers or finishers, are independent and self-employed. You should ask these clients if they work exclusively out of their shops or work on job sites. Depending on their answers, you may decide the best coverage would be general liability, property, commercial auto, inland marine, contractor's equipment, and builder's risk.

Another high growth industry is the plumbing business. This is generally a fairly stable business. You need to ask this client whether or not he works on boilers. If he does, he may be covered by the carriers. You need to know if the plumber has a showroom where customers are allowed access. If so, there is always the possibility of third-party lawsuits.

When you are considering contractors as clients, you should not forget about window washers. These are individuals who are always in demand and face plenty of risk in their work related activities. You need to know what kinds of structures a window washer services. Residential properties and small commercial ones are very different from high rises. You might suggest general liability, commercial auto, equipment, and workers' compensation for clients with crews.

Electrical installers are not in a field that is growing rapidly. Consumers have become accustomed to replacing damaged electronics rather than having them repaired. Technology has made electrical equipment more reliable and less in need of regular repair. If you have an installer as a client, you need to know if that person owns his business. If so, he will need a business owner's policy.

General contracting is growing as an industry in this good economy. It's important to understand what your general contractor client actually does. Many of these people get involved in most aspects of the projects they manage. Those who handle big commercial projects will usually benefit from an umbrella policy. Contractors with employees need workers' compensation.

If you are looking for new clients, making the contracting business one of your targets is a good idea. Most facets of the industry are experiencing steady growth. It will always be a relatively risky business that requires good coverage.

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