Many Reasons To Have California Contractor Insurance

Any contractor in the State of California must have a state license. To obtain this license they must put in a minimum of four years as a journeyman, be 18 years of age and pass an examination on law and trade, with the state. In addition, they must show proof of having California contractor insurance.

This insurance is required by law and is quite lengthy. They must have Additional Insured and Additional, Additional (A1) and Blanket A1 Endorsements. They must also have Bodily Injury; Deductible; Liability; General Liability; Liability and property damage. This massive coverage is to cover the many possible accidents that can happen on a construction project.

These policies assure the property owner that if they are injured or their property is damaged by the contractor they will be reimbursed. It also covers other people, such as employees or visitors should an accident occur. It is never known when something will happen that will cause damage or cause injury to someone on the construction site.

As a precaution, anyone hiring a contractor to do work should ask to see their Certificate of Liability. Such a certificate will assert that the contractor has liability insurance and names the Certificate Holder (insurance company) that holds the policy. This assures the property owner that, in case of any accident, it will be covered by insurance.

Construction projects are considered one of the most dangerous places of employment. People are injured every day by falling objects, scaffolding giving way and other such misfortunes. This type of accident involves considerable expense and having adequate coverage is essential before ever starting a job.

Having adequate California contractor’s insurance also protects the contractor from charges or a lawsuit should something accidentally happen on the premises. This insurance is especially in working on small projects, such as in a home, where there may be priceless art or other objects that might be damaged by one of their employees. Paint is spilled, boards fall over, and many things unforeseen can happen which results in repairs having to be made.

The State of California has very strict laws regarding any contractor being covered with insurance. Under California contractor insurance provisions, should any contractor be found working without it they are severely fined. In addition, they can have their license suspended for a short time or lose it all together, depending on the circumstances.

California contractor insurance

Looking to find the definitive source of information on California contractor insurance?

Technorati Tags: contractor insurance, Finance, Insurance