Questions California Contractors Insurance Agents Should Ask Contracting Professionals

By Eileen Reese

When the economy is going well, the construction business almost always benefits. People who feel confident about the future are willing to spend their money on new houses and the remodel and expansion of older ones. This encourages newcomers to start building and repair businesses, and those who have been in the business for years to expand. All of these people have to be insured. That opens great opportunities for California Contractors Insurance Agents.

To insure a contractor appropriately, the agent has to understand the nature of each client's business. Handymen are in a general contracting category. They may do all kinds of jobs. As the agent, you need to know exactly what your handyman client does. The answer will determine whether contractor's coverage, builder's risk, inland marine, general liability, or some combination is the best.

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, and other related industries, can be great sources of business. Contractors have to have insurance. As an agent, it's your job to make sure they have the right kind.

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