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Contractor General Liability Insurance In California
Under a Contractor General Liability insurance in California,
the insurer is obligated to pay the legal costs of a business in
a covered liability claim or lawsuit. Covered liability claims
include bodily injury, property damage, personal injury and
advertising injury (damage from slander or false advertising).
The insurance company also covers compensatory and general
damages. Punitive damages aren't covered under Contractor
General Liability insurance policies because they are considered
punishment for intentional acts.
In today's litigious society, even small accidents can result in
large lawsuits. That's why Contractor General Liability
insurance in California, along with property and worker's
compensation insurance is essential for business whether small
or large. Contractor General Liability insurance in California
protects the assets of a business when it is sued for something
it did or didn't do to cause an injury or property damage.
Contractor General Liability insurance in California can be
purchased separately or as part of a business-owner's policy
(BOP). A BOP bundles property and liability insurance into one
policy; however, the liability coverage limits are generally
pretty low. Businesses that need more coverage usually purchase
liability insurance as a separate policy. The amount of coverage
a business needs depends on a couple factors. First of all is
perceived risk. Business owners should first consider the amount
of risk associated with their business. For example, a business
that manufactures heavy machinery is at a greater risk of being
sued than a company that manufactures linens and would therefore
need more liability insurance. A second factor is the state in
which you operate. Businesses that operate in states with a
history of awarding high damage amounts to plaintiffs typically
need to carry liability insurance with higher coverage limits.
An insurance broker can offer guidance in this area.
Taking precautions before an accident can help keep your
liability and your insurance rates down. All businesses can take
certain steps to lower the chance of a liability insurance
claim. For example you can set a high standard for product
quality control.
Make sure all company records are complete and up to date. Be
sure employees are properly trained. Get safety tips for your
type of business from your insurance company. The link below is
a suggested site for more information on Contractor General
Liability insurance in California.
About the author:
Victor A. is an expert author who writes for California
Contractor">http://www.liability.insurance-benefits.org">California
Contractor General Liability Insurance