Increased Demand for California Contractor Insurance


Roofing Insurance for CaliforniaToday’s justice system has made it extremely convenient for a consumer to sue hired contractors for thousands or even millions of dollars, which explains why the demand for California contractor insurance has steadily increased across numerous industries.

While availing general liability isn’t a requirement by law within The Golden State, countless commercial establishments feel that the coverage offered by the mandatory worker’s compensation – which covers bodily injuries while working onsite – alone is too limited.

The type of insurance contractor companies — especially the ones engaging the construction industry – should be getting must protect them against liabilities stemming from property damage, damage resulting from defected work, bodily injury, and injuries dealt to third parties. Should a contracted firm run into an issue with any of these elements, their clients can (and most likely will) use the situation to their advantage by taking legal action which could necessitate a financially crippling settlement.

These products are specifically designed to render ample protection in the event of untoward accidents. Coverage of each policy will vary depending on the nature of the enterprise and its operations. Large companies with high-risk operations typically pay higher premiums, while smaller commercial entities such as food chains pay less.

Small businesses such as a home-based child care center or a photography studio pay even smaller California contractor insurance premiums ranging anywhere from $300 to $1,000 annually, as these types of establishments tend to carry less risk as compared other businesses within other industries.

In the worst-case scenario, an unsatisfied consumer – or one that has sustained bodily injury or property damage – will file a lawsuit against the group he hired to get a certain job done. If insured, the contracted organization need not worry (much), as expenditures for court procedures and compensations for the aforementioned damages will be covered by his insurer.

Other policies may extend their coverage to include personal injury, which is a monetary compensation provided for insults, as well as the physical and even mental trauma that a consumer had to endure. Companies protected by an extensive insurance contractor policy may even be covered for advertising injury, which is a type of compensation awarded by court for misleading or unethical advertising.

Considering all the risks involved with running a business and accepting potentially hazardous jobs, availing an in-depth California contractor insurance policy is undeniably crucial to avoid unnecessary headaches, and even prevent the possibility of filing for bankruptcy due to overwhelming lawsuits.

 

photo by: Calsidyrose

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