Tuesday, February 24, 2015

Importance Of Contractors General Liability Insurance California

By Olivia Cross

Building construction is a very expensive and carries some risks. Contracting with clients in this litigious days also make you liable to prosecution in case of accidents. The accident may be at your premises or at a premise that your company worked on. With contractors general liability insurance California residents themselves against losses that may be incurred in case of a lawsuit.

Contractors general liability insurance policy in California is recognized to protect your assets from being used as collateral in case a court rules on settlement. If you have this cover it shields your assets from being used to settle a claim from a third party. This claim may arise if a said person got injured in your property or the work you did on a premise harmed them.

The cover also protects your employees against being held responsible for third parties claims. Even though this cover protects your employees from libel by third parties it does not protect cover them in case of accidents or injuries or diseases. It is therefore important that you also get a workman compensation cover for your employees. This covers enables your worker to carry out their duties without being scared of lawsuits against them.

For a contractor this insurance cover is a backup plan in case the court should rule for a settlement. It offers your business a survival because it covers the court bills and the settlement made by the ruling. Therefore it gives you a peace of mind and you can concentrate on running your business without going bankrupt. Even after the settlement your business is assured of funds to continue with its operations.

Insurance is an important but a complex business requirement. You thus need to seek professional advice from your insurer on what policies best fulfills your needs. You need to get all the details about the claims that can be covered by your policy. As a contractor you may be very careful so that you do not buy policies that you do not require.

There are several claims that the policy should cover. The damage property claim is one of them. It deals with case whereby a third party accuses your work of damaging their property or business. The policy however does not cover remodeling contractors since the building being worked on is not originally theirs.

A medical expenses claims policy is another policy you should have. This deals with a third party that may come in harm at your property. It covers all his medical expenses. You should rush the person to hospital immediately to eliminate other liability or claims that can be made. This also saves time and extra costs that may be incurred.

Completed products claims and a personal advertising and injury claim cover should also be detailed in the contractors general liability insurance cover. Completed products covers your finished works while the later deals with copyright infringements and branding claims. For a peace of mind all contractors in California needs a general liability policy.

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