Are you thinking of setting up a small business as a contractor in California? Starting up a contracting business generally requires some investment in equipment, materials, office machinery and a suitable business motor vehicle. To protect your financial investment in the business it’s important to allocate some funds for the purchase of appropriate California contractors insurance so that you can receive compensation for losses if there is an accident or other mishap or disaster covered by your policy.
Carrying contractors’ insurance provides peace of mind for a contractor who wants to protect his or her investment in the business. There is also another major advantage in carrying contractors insurance: it may make it easier for a contractor to submit winning bids for contract work.
Many clients’ specifications for contract work have contractors’ insurance as a prerequisite for potential bidders. Even when contractors’ insurance is not stated as prerequisite, clients may have a preference for fully insured contractors and many clients do not give serious consideration to bids from uninsured or underinsured contractors. The price you submit for a job plays an important part in a client’s hiring decision, but your insurance coverage is also important. It can offer reassurance to the client that you are financially responsible and therefore likely to be professional in your approach to business dealings.
Carrying California contractors insurance is potentially a way of making your business more competitive and attractive to major clients. Consider engaging a local insurance agent who will help you to find the best value coverage so that you can focus on growing your new business.