Client lawsuits are more prevalent than you might expect, with 43% of small business owners having faced the threat of or involvement in a civil lawsuit. Contractor insurance provides crucial peace of mind if a client sues you over your services, even if you are not at fault.

Contractor insurance encompasses a bundle of policies designed to offer comprehensive protection for general contractors. This coverage shields you from significant risks in your line of work, such as property damage and injuries.

In scenarios where you are held liable for damages to a third party — be it an individual or property — you would be responsible for covering the entire cost of these damages. A contractor insurance policy helps you manage these costs, including potential legal defense expenses.

Budgeting is critical for business owners. However, postponing or avoiding contractor insurance can be risky, especially if you believe it does not add immediate value to your business.

General contractors in California are susceptible to property damage claims that could severely impact your finances. For instance, if you are sued for causing significant damage to a client's property, you might have to cover legal fees and damages out of pocket without proper insurance.

Contractor insurance also provides significant reassurance if a client sues you, even if you did nothing wrong. Lawsuits are more common than you think, with many small business owners having faced them.

Moreover, many states require contractors to have insurance, particularly if they have employees or work on specific projects. Additionally, proof of insurance is often necessary to be licensed as a contractor.

Clients in California prefer working with licensed and insured contractors. Widespread advice advises customers to choose insured contractors, so having this coverage can help you attract more clients.

Contractor insurance varies based on factors like the types of projects you handle, project locations, payroll, employee job roles, and the number and type of vehicles used at work. It can be complex, but Direct 2U Insurance is here to help you package the right insurance for your needs. Contact us today to learn more.

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.