subject: California General Liability Insurance Helps Business Survive [print this page] While everyone hopes that an accident will not occur and damage to a person or property will not be caused by a contractor or a business, it happens. California general liability insurance helps businesses survive the inevitable accidents that can happen almost any time. Without this essential coverage many businesses could not survive the financial blow of a lawsuit or repair costs in the case of substantial damage to property they worked upon.
As with almost any other type of insurance coverage, premiums are set by the risk factors, and for businesses which operate from a single location such as a store then a safer store can mean lower premiums. One way to lower rates besides a good claim free history is to also maintain an environment where the potential for accidents is minimized. The proper use of safety equipment and signs, as well as a brightly lit customer area can help lower the risk of accident and possibly the rate of the premium paid.
Business insurance for contractors is just as important as for those with fixed business locations. Contractors may work in higher risk environments and lose everything if a serious accident occurred and they were uninsured. Uninsured status may also exclude contractors from lucrative contracts.
Contractors purchasing business policies will be required to know what percentage of their operations are commercial, industrial, and residential. In addition, they will be required to provide a list of the services, which they perform. If a contractor is a painter and that is all they do then listing painting would be sufficient. However if the contractor is involved in remodeling, plumbing, and framing all those must be listed for the insurer as well as the types of jobs.
Combining this information can help underwriters determine a premium based on the risk factor of the type of projects the contractor works on. Lower risk projects mean a lower risk of accidents and injury and the insurer may have a lower rate for that contractor. The converse is true of course, projects where accidents, damage or injuries are frequent or very probably will often cost more.
When it comes to business liability policy in business, it is almost essential to have in order to maintain a business. As unfortunate as it is accidents do happen on business premises, contractors to accidentally damage property and by being uninsured they increased their risk of lawsuit and risk losing their business. In addition, commercial and government contracts often require business insurance and without it, certain lucrative contracts might be closed to the contractor.
Business owners with a fixed location and business building may also risk their business by not having a liability insurance policy. Some companies may offer a discount for a safe record or for a safe environment or building. General liability insurance all comes down to how much the individual is willing to lose by going without it.
