General liability insurance is quite important to protect your workers, property, and other valuables. But there are many contractors’ general liability insurance and California contractor license bond pitfalls which are not covered by insurance companies. You can’t claim any amount if it is not mentioned regarding insurance. Therefore, it’s essential to be aware of these pitfalls as you won’t get anything from the insurance company under certain circumstances.
Let’s look at some important aspects contractors’ surety bond and liability insurance
• Are you working with licensed contractors?
Before hiring any contractor make sure that the person has the license. If your contractor does not possess the license, then you can’t claim an amount from the insurance company in case of any crimes or dishonesty. Make sure to verify whether the people working with you are covered by a licensed firm.
• Does the insurance terms are applicable for your whole period of construction?
Some policies are made according to the period. For example, if you get agreed with an insurance policy for three weeks then it will protect you for three weeks only. You will be required to complete the construction within the same period. If your policy expires and anything wrong happens to your property or workers, then you are liable to pay all the charges, not the insurance company.
• Do the insurance policy cover injuries, construction property, and theft?
Construction sites are very dangerous as different tools and equipment are used. These tools may injure anyone passing through that region. If your policy has no rule regarding the injury to the third party, then it is another contractor’s general liability insurance pitfall according to which you will be liable to pay the medical and traveling expenses of the injured person.
Also, check whether there is a liability for theft, or not. Normally at construction sites, we can observe many tools and machinery lying here and there. There are some other valuables as well, therefore make sure in case of theft the insurance company is liable to pay you the amount.
Some policies do not cover the property and asset damage. So don’t forget to verify if this factor is present or not.
• Is the contractors’ liability insurance cover the higher risks?
There is a limit to the risks of a contractor by an insurance or surety bond company. If you are working at higher risks, then you need to know whether your insurance company will provide you the claimed amount if there are any critical and serious cases. If not, then you will be liable to meet that expense.
These were some contractors’ general liability insurance pitfalls which can be very disadvantageous for you. These conditions will make you liable to pay the charges on your own. That is why it is required before signing policy, read it and make sure that every condition is mentioned in it. So that if there is any crucial condition, then insurance company will not refuse to pay you the claimed amount.