Why California Contractors Insurance Agents Need To Know Exactly What Their Clients Do

By Barry Pfeiffer

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 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.

Another high growth industry is the plumbing business. This is generally a fairly stable business. You need to ask this client whether or not he works on boilers. If he does, he may be covered by the carriers. You need to know if the plumber has a showroom where customers are allowed access. If so, there is always the possibility of third-party lawsuits.

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 in a field that is growing rapidly. Consumers have become accustomed to replacing damaged electronics rather than having them repaired. Technology has made electrical equipment more reliable and less in need of regular repair. If you have an installer as a client, you need to know if that person owns his business. If so, he will need a 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.

If you are looking for new clients, making the contracting business one of your targets is a good idea. Most facets of the industry are experiencing steady growth. It will always be a relatively risky business that requires good coverage.

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