How to Buy California Contractors General Liability Insurance
- Look up your contractors license number at www.cslb.ca.gov
Write down your license number, the year you were licensed and your license classification(s).
- Draw up a list of ALL of your operations (i.e, plumbing, electrical, painting, remodeling, home building, etc)
- Determine what percentage of your work is residential, commercial, and industrial.
- Determine what percentage of your work is new construction versus existing construction (including remodels and room additions)
- Determine your estimate for gross sales, payroll, and subcosts for the upcoming year.
- If you are a larger contractor with current insurance AND paying more than $4500 per year in liability premium, you will need to obtain loss runs from your prior agent.
- Call an experienced insurance. broker specializing in California construction contractors insurance. Call (866)925-6288, Ask for Natalie Williams and request a free, no obligation quote.
Tips and Warnings
- The best rates often go to owner only operations doing painting, electrical, and remodeling/handyman work.
- Most insurance companies offer a payment plan. Some brokers also take credit card payments to help spread out the cost of the insurance.
- Always call your insurance agent to discuss the insurance requirements of one of your potential customers BEFORE you sign the contract. If your customer has stringent requirements, your current policy may not be sufficient.
- Find a broker who specializes in construction contractors insurance. Just as contractors can specialize in their trade, brokers who specialize in construction insurance often find the best deals and give better advice.
- Remember that General Liability does not cover your tools.
- If you already have insurance, insist that your current broker send you your renewal proposals at least 30 days before your policy expires. This will give you more time to shop the market to see if you are still getting a competitive quote.
- Not all liability policies are alike. Cheaper policies may have some critical coverages stripped out. Ask your agent for details.
- Beware of high deductibles. Higher deductibles can lower the premium costs but if you can't afford the deductible when a claim hits, you may be in trouble.
Low cost carriers do not want to insure any contractor who has worked on a new home tract subdivision in the last 10 years