Why You Need Electrician Insurance In California
Part of building a successful business as a contractor is marketing your company effectively. Although there are many platforms that you can use to do this, it will not be possible to attract customers until you can show your operations as being both safe and professional. As someone working within the electrical industry, it is vital to invest in electrician insurance in California. Following are just a few of the many reasons why.
When California companies hire contractors in their business to business transactions, many are required by their own insurance companies to make sure that the subcontractors are insured. If they are not, they run the risk of having their own policy pay the claim for their own subcontractor. They subject themselves to a lot of unnecessary liability.
Due to this fact, if you cannot submit a certificate of insurance when bidding for jobs or when submitting a quote to a single entity, your bid will be considered more likely with insurance coverage. Companies simply cannot take on this additional risk. As such, one of the very first things that they check when reviewing different contractors is the type, amount and validity of the coverage they have bound.
You might think that you can avoid this requirement by offering some of the most competitive rates within your niche. Even if you slash your prices, the costs of assuming liability will far exceed the resulting savings. This means that the services and solutions that you provide will continue to be undesirable to all discerning business. While you might balk at the costs of maintaining these protections, the amount of money that you spend to secure them will be far less than the sum that you will invariably lose by not having the necessary protections.
These are things to consider whether you are an electrician or a painting contractor in California. Anything can go wrong while you are on the job and thus, your clients are going to want assurance that you have a means for covering any damages that are sustained. There are two types of coverage that most California contractors must have in place. These are general liability and workers compensation coverage. Without them, it will be harder to compete with established contractors also bidding on the prospective project.
General liability is designed to keep your clients protected in the event of an an-on-the-job damages. For instance, if you or one of your workers accidentally damage or cause harm to the property while completing a project, the property own will not have to pay for the resulting repairs or other expenses.
Unlike general liability, this is designed to protect people from any mistakes or oversights that you make during your work process. Although it is not legally required for all contractors to have it, this is still something that many potential customers search for when screening companies and before finalizing their hiring decisions.
General liability is a great thing to have if you happen to be an HVAC contractor. If for some reason the installation goes in wrong. Your client can make a claim rather than absorbing the costs of this error or expecting your client to absorb it on your behalf, you can rely on HVAC contractor insurance in California to help pay for your mistake. This type of cover is not unlike the malpractice insurance that dentists, doctors and lawyers are required to maintain.