Questions California Contractors Insurance Agents Should Ask Contracting Professionals

By Barry Pfeiffer

When the economy is on the upswing, the benefits to the construction business are usually enormous. People will invest in new homes and plan renovations of their existing residences. The idea of starting a construction business, or getting back into the field, becomes more attractive. All kinds of contractors suddenly have more work, and they will all need to be insured. This is a wonderful opportunity for California Contractors Insurance Agents.

To insure a contractor properly, the agent must understand the nature of the contractor's business. Handymen usually do general repairs for homeowners and small businesses. They may work as independent maintenance men. You should ask a potential handyman client exactly what he does. The answer to this question will help determine if he needs general liability, contractor's coverage, inland marine, or builder's risk insurance.

In today's economy carpentry is on an upward trajectory. It will always be a risky business. About a third of carpenters are self-employed, They may be framers, finishers, or both. You have to know if they operate exclusively out of their shops or travel to job sites. Depending on the response, the carpenter client may need contractor's equipment, inland marine, commercial auto, builder's risk, property and general liability coverage.

Plumbing is another fast growing industry. The plumbing business tends to be fairly stable. You want to ask your plumber client if he works on boilers. If so he might get coverage through the carriers. You should ask if the plumber's workplace includes a showroom. There could be third-party lawsuits if customers are allowed into the showroom.

Not everybody thinks about window washers when they are considering contracting businesses, but they are potentially great clients. Window washers are always needed. In a good economy, with commercial building on the rise, they are more in demand than ever. You need to know what type of structures your window washer client services. Servicing high rises and residential properties are two very different businesses. Good suggestions for this client might be commercial auto, equipment, and general liability. Workers' comp is necessary if the client has employees.

A smaller field, that has seen a downturn, is electrical installment. There is generally less need for installers and repairmen because consumers have gotten used to purchasing new electronics instead of spending the same money on repairing older models. Electronics are more reliable today because of new technology. If you have an installer client, you should ask if he is a business owner. If he is, he needs a good business owner's policy.

The general contracting business is one that is on the upswing. To find a general contractor the right coverage, you need to know exactly what kind of work he does. Most are involved in all aspects of construction. If he works on large commercial projects, he may need an umbrella liability policy. If he has employees, he must have workers' compensation coverage.

The construction industry has great potential for agents looking for new customers. The industry overall is experiencing healthy growth. Most contractors face some risk and need the kind of coverage a good agent can provide.

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