Contractor insurance is available in various packages suitable for masons, carpenters, electricians, landscapers and other professionals involved in construction works. Therefore, all constructors with knowledge on the risks involved in their line of duty must know the basics of contractor general liability insurance. It protects companies from being financially ruined due to lawsuits arising in case of accidents. The main reason for getting an insurance cover is to have a compensation plan in case of accidental losses. The cover gives constructors peace of mind as they go about their businesses. Companies with contractor insurance are better performers because they go about their duties without fear of the unknown. Investing in insurance coverage is beneficial to a California contractor in the following ways:
Top 5 Benefits of California Contractor Insurance
1. Offers Employee Protection
A company’s employees are covered in case of injuries while working on projects. Construction work is risky, and employees need to be guaranteed of compensation in case they are injured while on duty. A company may also suffer financially if it were to pay for hospital bills for employees when they are hurt. A company will attract the best employees as their protection is assured. No employee is looking for an employer who will delay compensation or dodge hospital bills in case of accidents. The company’s staffs are free to work in any site and go extra miles as they feel protected.
2. Gives Guaranteed Asset Protection
Contractor Insurance is there to protect the company’s assets from accidents. A business will shut its doors after destructive accidents. Insurance ensures that the business is compensated and remains in operation even after the worst accident. With a reasonable premium payment, the company’s tools, equipment, and machines are repaired or replaced without extra charges to the business. The coverage also protects the business from cost incurred after natural catastrophes.
3. Improves Business Reputation
Clients and employees do a ground check before engaging a construction company. A company with an active insurance policy is trusted because customers feel protected. The best professional constructors always seek opportunities to work in such companies. With an insurance plan, a company gets an improved corporate legitimacy, gets the best employees and attracts potential allies/partners. Other constructors will always recommend insured companies to potential clients or sub-contract them when overloaded with projects.
4. Shields Companies from Additional Financial Penalties
In case of accidents, many States require the company to compensate their affected staffs. The insurance is there to shield their clients when such happens. A company is shielded from additional financial penalties as their employees are paid without delays.
Employers are required by the State to have compensation insurance for their employees. A company that has opted out of the workers’ compensation plan is subjected to financial penalties.
5. Helps Businesses Become More Competitive
A business is more competitive when it has active contractor insurance. Clients avoid companies without an insurance policy because they can be sued in case an employee gets injured in their premises. A company with an insurance plan stands a better chance of being contracted as the client also feels safe from being penalized. Clients also ask for insurance certifications when tendering projects.
Getting an insurance cover for a construction company can be viewed as an additional cost to the business owner. An insurance plan for the business, the people involved and related properties is a necessity because there is a high risk associated with the profession.
Getting the best insurance cover for a construction company and paying all premiums is the best decision a professional contractor company in California can make.