Insurance for contractors is vital. You cannot do business without it because most of your clients will ask you to provide proof of general liability insurance. In addition, when you buy Insurance For Contractors In LA, it will protect your assets so that you will not be exposed to catastrophic losses if injuries or accidents occur during a job.
General liability insurance provides several vital covers. Collectively it insures bystanders, customers, subcontractors and employees against various claims, including property damage, body injury, slander, completed operations and defective products. A general liability policy covers the legal and judgment expenses arising from claims filed against the contractor. The expenses include lost wages, suffering and hospital expenses incurred by the other party.
Many contractors in Los Angeles, CA tend to spend too much money annually on insurance premiums. The reason for this is that they lack knowledge about the insurance quoting process or their agents do not make it easy for them to choose the insurer that offers the best rates. When purchasing a policy, it is essential to look for the insurers that offer low premiums.
Many factors determine the cost of a policy. One of these factors is the amount and frequency of claims that are made against a contractor. As a main contractor, you can minimize the number of claims by getting insurance certificates from the subcontractors. The certificate should state that your firm is an additional insured in the project you are doing together. If a claim arises because a subcontractor was negligent, the company that insures the subcontractor will take liability of the situation. You can also report the claim to your insurer, but your insurer will only come in after the policy limit of the subcontractor is completely utilized and the claim is not yet settled.
The other way to reduce your premiums is making sure that you only hire people who have good driving records to drive your vehicles. Asking potential candidates to show you recent motor vehicle records when attending the interview is important. Drivers who have speeding violations tend to cause more mishaps. Therefore, avoid hiring individuals who have many speeding tickets since this can raise your premiums.
As you buy insurance, you should also ask if you can get special discounts. You may get a discount if you insure your home, vehicles and business with the same company. It is also advisable to negotiate the premiums to see if you can qualify for lower rates.
Another way to lower premiums is to lower your liability risk by making your business safer for your employees, stakeholders and customers. You can choose to outsource risky tasks to other contractors. An experienced agent can provide you with a list of independent contractors in Los Angeles who that can handle risky tasks for you. In such a setting, the risk will be transferred to the contractor. Your insurer will then consider your business to be relatively safe.
Reviewing your policy is also vital. It is not a must that you insure everything in your business. Only insure assets that have value for the business. You should also look for ways to raise your deductibles so as to reduce the premiums.
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