How can you get the best contractors insurance in California for your business? It’s not difficult—but it’s also not as simple as picking out an agency and paying for a policy. You should consider (and maybe reconsider) the amount of coverage you need, as well as the kind of coverage you need. It’s also important to make sure you’re working with the right agency.
Here’s how to be sure you’re getting the right contractors insurance for your needs.

Decide on a Baseline Coverage Amount

One thing many inexperienced contractors don’t fully appreciate is that your policy should cover more than just the size of your project. It’s easy to assume that a $20,000 contract needs exactly $20,000 worth of coverage—no more, no less.

The thing you have to keep in mind is that someone who doesn’t appreciate the $20,000 job you did, might easily claim $200,000 in damages. So it pays to have a thorough policy.

A good rule of thumb is to add up everything your company is worth, and take that as a baseline figure when it comes to a contractors insurance policy. You need more than that amount, but you should never purchase less. Not even for a small job.

Decide Your Other Needs

It goes without saying that you’ll need general liability coverage. But that only covers the most basic of your needs.

You’ll also need a California surety bond if you’re dealing with a public construction contract. Many private construction contracts require a surety bond, as well. Your personal auto policy may not cover your business needs if you’re working on a commercial job, since most private polices don’t cover the amounts needed for commercial jobs ($1,000,000 or more).

You may also need Builder’s Risk insurance, a license bond, or one of several other types of coverage. An experienced California contractor insurance agent is your best bet here.

Shop Around for Your California Contractors Insurance

A lot of people focus on price when it comes to California contractors insurance. And although price is important, it’s not the only important factor. In addition to a good price, it’s also important to find an agent who knows the ins and outs of your industry, who knows what you need (and don’t need) to stay safe, and who has access to plenty of the right carriers.

It’s essential to find an agency that specializes in contractors insurance, instead of just a general agency that claims to offer what you need. A specialty agency will have access to plenty of insurance carriers so that you can get the best deal on the most thorough coverage. They’ll also have good relationships with other clients, contractors, and the industry in general, which will help them serve your needs a magnitude of order better than a general agency.

Even among specialty agencies, some may be better suited to your needs than others. One may have more of the right connections, or you may just have a better gut feeling about your agent. Look for agents that specialize in California contractors insurance, and then decide which one is right for you.

There you have it! With these three steps, you can make sure that you’re finding the right California contractors insurance policy and provider for you.

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