What Does California Contractors Insurance Cover?

Do you work as a contractor? Well, you are certainly aware of the frequency of workplace accidents that happen in this line of work.

In order not to be held liable for any kind of injury or property damage that occurs during or after the completion of projects, general contractors and subcontractors are encouraged to pay for general liability insurance.  There are numerous insurance experts in California, such as https://www.contractorbond.org/california-contractors-general-liability-insurance/, providing the best liability insurance for contractors.

Take a look at the types of coverage these policies include.

Bodily injuries and medical expenses

The contractor’s insurance policies in California provide coverage in the case of bodily injuries sustained by a third party, as well as the medical expenses related to the injury. For instance, in case a client or one of the neighbors experiences an accident during the work process, the policy will provide compensation for the broken arm, wrist, or any other type of injury.

In addition, standard insurance policies cover not only the medical payments but also the legal expenses that stem from such scenarios as long as these don’t exceed the limit, which is usually $5,000. In the unfortunate event of someone’s death, the contractor’s liability insurance is supposed to make up for the funeral expenses.

Property damage

Another crucial aspect of the contractor’s insurance policies is the protection they provide when contractors are considered responsible for property damage. In the course of construction work, property accidents are likely to happen because of negligence or the inability of workers to perform a particular task successfully at a given moment.

Not only the properties of clients but those of neighbors might also sustain damage in the form of a flooded yard, ruined floors, a damaged fence, etc. For example, plumbers might end up flooding the home of clients who would later ask for compensation for the deteriorated furniture and flooring.

Moreover, some clients might request compensation when the project of workers takes longer than the agreed deadline. Being unable to use their properties, usually obliges homeowners to continue paying for temporary accommodation or go through the discomfort of staying at someone else’s house for the time being.

Products-completed operations

Believe it or not, the general liability policies offers protection to workers even after a long time since their services were performed. It covers any bodily injuries and property deterioration that result from a particular product or service the company had provided before the accident took place.

For instance, contractors in California are likely to be held liable for any accident that happens because of an improperly installed roof, water boiler, kitchen cabinet, etc. If a family member gets injured while opening a kitchen cabinet that wasn’t properly secured or the flooring gets flooded due to an incorrectly installed water heater, the company performing the services would have to compensate for the damage.

Advertising injuries

Even though contractor liability claims rarely involve clients claiming for advertising injuries, this type of protection is an indispensable aspect of general liability insurance. It refers to all types of illegal acts done during the advertising of a particular business, such as using the ideas of other companies to promote your business.

For instance, stealing photographs, advertisements, logos, or even Tweets from the competitors puts a company at risk for a lawsuit. In the event of being sued for using content without permission, the insurance policy can cover the expenses of the claim.


The cost of liability insurance policies in California is determined by the amount of risk involved in the occupation of workers. Hence, remodeling professionals are considered less likely to sustain injuries on the job in comparison with professional roofers. As a result, the coverage of the latter is substantially higher. Anyhow, the compensation is expected to be at least two times higher than the project budget.

Insurance companies vary in the criteria they use to calculate the premium. Some companies are interested in the record of experience, credit score, and age of contractors, not only their payrolls.

Final word

Investing in a general liability policy is vital for Californian contractors.

It’s the best way to be protected against financial damage while working on projects!