If you are a contractor in California, protecting yourself and your business with the right insurance coverage is crucial. Contractor insurance offers financial protection for you under unspecific circumstances. Using the right insurance policy helps you to avoid potentially devastating financial losses that could threaten your business.
There are several options to choose from regarding contractor insurance in California. They include commercial auto insurance, general liability insurance, workers' compensation insurance, and more.
Each type of coverage offers particular benefits that can assist you in protecting your business from many risks, from legal alterations with the local California handymen up to high profile clients. Here’s a guide that will answer your questions about California general contractor insurance.
In the construction industry, bonds and insurance are critical forms of protection for contractors and project owners. However, contractors should understand the differences between these two forms of protection.
A bond is a contract involving three parties: the surety, the contractor, and the project owner. The bond guarantees that the contractor will fulfill their contractual obligations. The surety will step in to cover the cost of damages or losses incurred by the project owner if the contractor fails to meet their obligations. Several types of bonds apply in construction, including:
Bid bonds–Guarantee that the contractor will enter into a contract if their bid gains acceptance
Performance bonds–Guarantee that the contractor will complete the project as specified in the contract
Payment bonds–Guarantee that the contractor will pay all suppliers and subcontractors involved in the project
Insurance is a form of protection that covers losses or damages incurred by the policyholder. In the construction industry, contractors can purchase different insurance policies, such as:
General liability insurance
Professional liability insurance
Workers' compensation insurance
Criteria | Bond | Insurance |
---|---|---|
Coverage | Specific to project | Broad range of risks |
Cost | 1-3% of the amount | Differs depending on risk and coverage |
Issuer | Surety company | Insurance company |
Purpose | Ensures project completion | Protects against losses |
Payouts | Paid to project owner | Paid to policyholder |
Claims | Filed by the project owner | Filed by policyholder |
The project owner is the main beneficiary with bonds, as the bond ensures one will get compensation if the contractor does not complete the project.
The policyholder is the main beneficiary with insurance since the policy covers damages or losses incurred by the contractor.
If the contractor fails to fulfill their bond obligations, the project owner must claim the bond. The policyholder must file a claim with the insurance company to get compensation for covered losses.
California contractor's bond covers the following:
A California contractor's bond offers coverage for two main areas of risk: payment and performance. The bond ensures that the contractor will execute the project as contracted.
If the contractor fails, the bond will pay the project owner's losses up to the bond maximum.
The bond guarantees the contractor will pay subcontractors and suppliers. If the contractor doesn't pay, the bond covers unpaid costs up to its limit.
California contractors may require to obtain license and permit bonds. State and local governments require these bonds to ensure contractors comply with building codes, regulations, and other legal requirements.
A license bond guarantees that the contractor must comply with all regulations and laws related to their profession. The bond will cover the cost of damages or losses up to the bond's limit if the contractor violates any laws or regulations.
A permit bond guarantees that the contractor must comply with all regulations and building codes related to the specific project. The bond will cover the cost of damages or losses up to the bond's limit if the contractor fails to comply with these requirements.
The surety company that issued the bond will investigate the claim if a project owner or other party files a claim against a contractor's bond. Suppose the claim is valid; the surety will pay the claim up to the bond's limit.
The contractor will reimburse the surety company for the amount paid. California's minimum coverage for a contractor's bond is $15,000. However, depending on the contractor's license classification, the needed amount may be higher.
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You may need insurance as an independent contractor in California, depending on your business. There are different independent contractor insurance requirements California. For situation-specific advice, consult a lawyer or insurance agent. Contractors in California should have various types of insurance to protect themselves, their employees, and their clients. Here are some of them:
Contractors in California should have workers' compensation insurance to protect their employees in the event of work-related illnesses or injuries. This insurance covers lost wages, medical expenses, and other related expenses.
General liability insurance is another requirement for California contractors. Workers' comp insurance for independent contractors in California protects them from liability for damages or injuries caused to third parties, like clients or their property.
Contractors should have commercial auto insurance if they operate vehicles for business purposes. The policy covers damages to the contractor's vehicles and any injuries or damages caused to others by the contractor's vehicles.
Insurance is key for contractors who offer professional services, like engineers or architects. Such insurance protects the contractor from liability for omissions and operating errors.
Yes, contractors in California should have liability insurance. General liability California contractor insurance protects contractors from contractual, general, and business tort responsibilities. Contractors must have minimum liability insurance from the California Contractors State License Board (CSLB) depending on their work type.
General building contractors need $1 million in liability insurance, whereas specialty contractors need $500,000.
Before renewing or getting a contractor's license, the CSLB requires liability insurance. Liability insurance is required for license suspension and fines.
In addition, California contractor insurance requirements are to obtain additional liability insurance to protect themselves from potential financial losses beyond the minimum requirements. Contractors need to review their insurance policies and ensure they have enough coverage for the work they perform carefully.
California contractors pay $40 per month or $480 per year for a $1 million general liability policy. The cost of contractors liability insurance California varies depending on several factors. Here are the factors that affect contractor insurance cost:
Type of insurance–Different types of insurance, like workers' compensation and general or professional liability, have different costs. The cost of insurance will still depend on the amount of coverage required
Size of business–The size of the business and the number of employees can also affect insurance costs. Larger businesses pay more for insurance than smaller ones
Risk-level–The risk associated with the work performed can also impact the insurance cost. For example, a contractor who performs high-risk work, like roofing or electrical work, will likely pay more for insurance than a contractor who performs low-risk work, such as landscaping
Insurance provider–Contractors need to shop around and compare provider quotes to find the best coverage and price
Acquire quotes from different providers to get the best value. Start by clicking the “Get Quotes’ button on this page. In connection, here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:
Cost per Month | Cost per Year | Best for | |
---|---|---|---|
NEXT | $15 | $180 | Best overall; Fastest general liability insurance for California contractors |
The Hartford | $23 | $276 | Experienced specialists |
CoverWallet | $29 | $348 | Comparing California contractor insurance quotes online |
Tivly | $39 | $468 | Comparing California contractor insurance quotes over the phone |
Thimble | $33 | $396 | Short-term general liability insurance for California contractors |
Hiscox | $30 | $360 | California contractor insurance with worldwide coverage |
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Many insurance companies in California offer contractor insurance. Choosing the best one can be challenging. Here are some of the top insurance companies contractors in California. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance:
10% discount for bundling other products
Affordable starting price
They give excellent customer service and support
It has a simple online application process and offers immediate coverage for a quick transaction
Best overall
Fastest general liability insurance for California Contractors
It may not be the best option if not bundling with other products.
NEXT offers industry-specific employer's liability insurance with an affordable starting price. They also provide a discount for bundling with other insurance products. Their online platform offers quick and easy access to certificates, making it an excellent choice for small business owners.
Furthermore, they offer competitive rates and customizable coverage options to handle the precise needs of each contractor.
Best for: Best overall; Fastest general liability insurance for California contractors
Average cost: $18 per month
Our rating: 10/10
Wide range of coverage options, including workers' compensation and commercial auto insurance
Offers discounts for bundling policies and for policyholders with good loss histories
24/7 claims reporting hotline
A+ rating from A.M. Best for financial strength
Specializes in serving small businesses
Agent might be required for the policy acquisition process if you have a poor risk profile
The Hartford is a popular contractor insurance los Angeles provider.Hartford provides customizable insurance plans to meet the specific needs of each contractor. Hartford is a financially stable company with a long-standing history. Self-employed workers comp California.
Best for: Experienced specialists
Average cost: $23 per month
Our rating: 10/10
Simple and convenient website
Multiple insurance partners for comparison shopping
Offers general liability and other policies for small businesses
Good customer service
30-day money-back guarantee
No separate employers' liability insurance option
If you are looking for California contractor insurance services, then CoverWallet is the way to go. They offer a user-friendly online platform for a quick and better user experience. CoverWallet’s insurance plans meet the unique needs of each contractor.
CoverWallet has a great selection of insurance partners and a streamlined quote process. CoverWallet provides general liability, professional liability, and workers’ compensation to contractors.
Best for: Comparing California contractor insurance quotes online
Average cost: $26 per month
Our rating: 10/10
A partner of many reputable insurance companies
Covers customers with poor risk profiles
Compare quotes over the phone
You need to call to get a quote
Do you want to benefit from California contractor insurance services? Contact Tivly insurance company to get comprehensive contractor insurance policies, including workers' compensation, liability, and commercial auto insurance.
They also offer 24/7 claims support. It offers workers comp insurance for independent contractors in California. Their low cost and flexibility make them an excellent option for many small businesses. Call now to compare quotes over the phone.
Best for: Comparing California contractor insurance quotes over the phone
Average cost: $29 per month
Our rating: 9/10
Quick and easy quote process
Small business-specific options
Offers policies for specific events or projects
A-rated insurance partners for financial stability
You can’t reach customer service by calling
Thimble is a well-respected insurance company. It offers contractor insurance policies for small and large businesses. They have a reputation for providing excellent claims support and customizable coverage options for self employed workers comp California.
Thimble's focus on small businesses makes it an excellent choice for entrepreneurs who need affordable and flexible coverage. This company’s contractors insurance for Los Angeles and other areas can be availed as a short-term general liability policy that lasts for hours, days, or weeks.
Best for: Short-term general liability insurance for California contractors
Average cost: $33 per month
Our rating: 10/10
Online policy management tools
14-day refund policy
A.M. Best A rated for financial stability
Wide range of coverage options for small businesses
Provides insurance for specific industries
Some policy restrictions may apply
Hiscox offers general liability insurance California contractor with a $1 million-$2 million per occurrence and aggregate limit. . Some of them include general liability and commercial auto insurance. They offer a 14-day refund policy and a small business-centered experience.Also, they also offer online tools for managing policies.
Best for: California contractor insurance with worldwide coverage
Average cost: $34 per month
Our rating: 10/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!