The Requirements For California Contractor Insurance
It is not easy to become a contractor in California. A contractor must be at least 18 years if age and have at least four years experience at the journeyman level. The applicant for the license must also take and pass a law and trade examination. A person who completes all the requirements and becomes a license contractor must then have California contractor insurance.
This insurance is required by law and is quite lengthy. They must have Additional Insured and Additional, Additional (A1) and Blanket A1 Endorsements. They must also have Bodily Injury; Deductible; Liability; General Liability; Liability and property damage. This massive coverage is to cover the many possible accidents that can happen on a construction project.
With the contractor, having this insurance there is a double benefit. Not only is he or she protected if there is an accident or injury but the property owner is protected as well. Another advantage for the property owner is that if something is installed wrong or something else is amiss there is insurance to assure them that it will be corrected at no additional cost.
Each contractor must have a Certificate of Liability Insurance from a Certificate Holder. This Certificate of Liability is a short form of the insurance policy and the Certificate holder is the insurance company. The contractor must have the short form in their possession, verifying that they have the required insurance, when on the job or signing a contract for a job. This is something that should be asked for by the client before signing a contract.
One sees, on television or in the newspaper, news of an accident on a construction site almost every day. A trench collapses, a scaffolding falls or some other mishap. This usually results in severe injuries for someone which requires medical care. Without insurance, this would erase any profit a contractor was expecting to realize from a specific job.
Having adequate California contractor’s insurance also protects the contractor from charges or a lawsuit should something accidentally happen on the premises. This insurance is especially in working on small projects, such as in a home, where there may be priceless art or other objects that might be damaged by one of their employees. Paint is spilled, boards fall over, and many things unforeseen can happen which results in repairs having to be made.
In California, proof of contractor’s insurance must be filed with the state. Anyone found working without California contractor insurance is subject to a severe fine and can have their license temporarily suspended or revoked all together. Having the right insurance is a protection, both for the contractor and the person or persons they are working for.
California contractor insurance
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