Buy California Contractors Insurance If You Want To Bid Competitively

By Jean Gonzalez

Bidding on construction projects can get very competitive. The potential for making a significant profit is at stake. If you intend to be a serious contender for the best projects, you have to make yourself the most viable candidate. This includes bidding low and having lots of experience. It also means obtaining all the licensing and certifying verifications required. You have to Buy California Contractors Insurance in the coverage amounts that project managers want to see.

It might be tempting to cut costs by being minimally insured, or letting policies lapse completely. You will be very sorry if something unexpected happens, and you are deemed responsible. It can ruin you financially and professionally. With the appropriate policies you will be protected against paying personally for worker injuries, equipment damage or theft, and even the supplies you buy for your office.

A standard business owner policy is a must for every business. This covers general liability, business interruption, and business property. When you own company cars and trucks, you need a commercial auto policy. Workers who drive their personal vehicles for your business purposes should have coverage in your commercial auto policy under a non-owned clause.

Costly tools and heavy equipment are necessary for most construction companies. You don't want to be forced to pay personally for their replacement if they are stolen or damaged. Leased equipment needs coverage as well. If a rented piece of equipment is damaged while in your possession, you may end up paying to have it repaired or replaced.

You must have errors and omissions coverage. This policy will cover errors, omissions, or negligence for which you are deemed responsible during the course of a job. Unfortunately, not all workers are honest. It is a good idea to protect yourself with an employee dishonesty policy. That way, if one of your crew removes something from a site illegally, the replacement cost will be covered.

You must have workers' compensation coverage if you have full or part time employees. This covers the cost of medical attention if someone is injured on the job. It will also pay a percentage of an employee's regular wages if time off for recuperation is required. Having an umbrella liability policy in place is a good idea. This will kick in when your claims exceed the cost limits allowed by other policies.

Good coverage is expensive, but there are things you can do to reduce the costs. Insurers will reward clients who beef up their security systems. You can install GPS equipment on your company vehicles to deter thieves and make recovery easier. Adding security to your business location will cut down on break ins. There can be substantial discounts for bundling separate policies into one.

The construction business can be very lucrative. In order to win competitive bids, you'll need to prove you have the proper coverage. Without it, your business may not succeed, and you are putting your financial future in jeopardy.

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