Setting up a business as a contractor in California has the potential to provide a good living while doing the work that you enjoy. Like all business enterprises, working as a contractor involves some risk and California contractors insurance is a way of protecting you from the financial consequences of natural disasters, accidents and other mishaps that are hard to avoid. There are a number of insurance products that offer contractors security and peace of mind; one of the most important of these is general liability insurance, which provides protection for premises liability, products liability and completed operations.

  • Premises liability protects customers who visit your workshop or retail space. A customer who suffers bodily injury on your premises or in your work area can have medical bills paid for by your premises liability insurance. This insurance also pays for property damage that occurs at your place of business.
  • Products liability pays for lawsuits related to the products you sell in your business if they cause harm, suffering or property damage. Products liability also pays compensation for the cost of injury and damage settlements. Remember that you may have to defend yourself from legal actions even if you did not manufacture the products.
  • Completed operations insurance provides protection in cases where customers claim that work you did for them caused problems such as bodily harm or property damage. Completed operations coverage can cover a customer’s medical costs and property repairs and a contractor’s legal defense costs.

Your experience and trade skills will help to ensure that your contracting work does not cause harm to people or property. However, accidents can happen and the liability insurance components of California contractors insurance ensure that you and your clients are protected from the consequences of mishaps.