Questions California Contractors Insurance Agents Need To Ask Contracting Professionals

By Alta Stark

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.

When you are considering contractors as clients, you should not forget about window washers. These are individuals who are always in demand and face plenty of risk in their work related activities. You need to know what kinds of structures a window washer services. Residential properties and small commercial ones are very different from high rises. You might suggest general liability, commercial auto, equipment, and workers' compensation for clients with crews.

Electrical installers are not as in demand as they once were. Consumers have found out that replacing electronics can be cheaper than repairing them. New technology has made electronics more reliable than they used to be as well. You should ask an electrical installer client if he is a business owner. If he is, he needs to have business owner's coverage.

Another business on the upswing is general contracting. You can't suggest coverage for one of these clients until you know the type of work he handles. A lot of these professionals handle most aspects of construction. If he is involved in big commercial projects, he will probably need an umbrella policy. Most general contractors have employees and must have workers' compensation insurance.

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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