Finding contractor insurance in San Marcos, CA, can provide adequate protection and peace of mind at the time of sign-up and in the years ahead, provided you’re checking in and reviewing those terms annually. There’s a reason businesses spend over $300 million annually on premiums.
In this article, we examine why you should have a contractor’s policy and review it frequently. It’s because the drawbacks of not having insurance to protect your business are so much more costly. Let’s begin!
Make Sure All Labor You Do Is Covered
The first rule of getting a contractor insurance policy is to know what you are getting it for. This can seem self-explanatory, but some contractors fall into the trap of thinking policies offer catch-all coverage.
Not the case. For example, let’s say that you are an electrician by trade but dabble into other areas such as plumbing and carpentry. Just because the electrician portion of your business is covered, that doesn’t mean additional services will be.
Reading the fine print is essential. If you’re unsure whether a policy has you covered after taking on new services throughout the year, talk with your agent during a policy review. Also, consider consulting with an attorney for a second opinion.
Ensure Adequate Coverage Limits
After you buy contractor insurance, it is tempting to let it ride without revisiting at regular intervals. This, too, is a mistake because the cost of goods and services can change throughout the year.
Just consider the volatility of lumber prices throughout 2020 and early 2021, and it’s easy to see how the work you do can fall in and out of liability coverage limits. Use policy review time to make sure that you’re covered for adequate amounts in the event that a claim should arise along the way.
Verify You Are Meeting State Requirements
The decision to purchase contractor insurance isn’t exactly up to you in many parts throughout the U.S. Operating without insurance could get you in legal trouble at best and leave you financially vulnerable at worst. Make sure that you have checked with your state’s licensing requirements.
Purchase the minimum general liability requirements at the very least, so you’re legally covered. Also, examine the workload you’re taking on to make sure that’s enough to cover you as the markets change.
Give Your Clients Confidence
Purchasing the prerequisite business insurance to cover the work you do can give you a competitive advantage over general handymen. Many homeowners look for proof of insurance before they hire anyone. Being able to provide that, no questions asked, presents you or your company as professionally as possible.
Protect Yourself Against Claims
The last and best insurance reason to review your contractor policy is a no-brainer. Protect yourself against any claims that may come your way!
If a client is unhappy with the work you have performed or makes some other claim of liability against you, the riders listed on your policy could very well cover you. What you have to do is make sure you’re covered for the type of work you’ve done, that the limits you’ve set are adequate, and that you haven’t violated any terms of the policy.
Looking For Contractor Insurance In San Marcos, CA?
Purchasing contractor insurance in San Marcos, CA, couldn’t be easier. At Top Contractors Insurance Services, we have a number of policies that can meet your needs, and we have the expertise to make sure your policy reviews are simple and easy to understand. Contact us today for a complimentary quote.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers’ compensation, general liability, construction bonds, and auto quotes.