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5 Mistakes People Make When Buying Contractors Insurance

February 20, 2012 By

If you are looking to make a solid investment in the long-term health of your business then you need to buy insurance. One of the best policies you can get is general liability which covers you in the event the work you do causes bodily injury or property damage.

In order for you to get the best benefit from what general liability insurance can offer, you need to avoid making the mistakes that too many contractors are prone to do when choosing a policy.

These errors include:

  • Not understanding what loss will really mean for your business – Many contractors often view insurance as unnecessary because they believe that they will never have claims made against them. Only when the unexpected happens are they shocked into the reality that they will have to pay for damages.
  • Buying the wrong policy – A variety of different insurance policies exist on the market. When you choose a coverage plan, you need to make sure that you are getting comprehensive coverage that fits your needs and budget.
  • Remaining unaware of policy exclusions – Exclusions are those situations and events that a policy does not cover. It’s therefore critical for you to check what isn’t covered and what you should do to protect yourself.
  • Assuming your subcontractors won’t need insurance – If you’re like most business contractors, you hire subcontractors to get projects done more efficiently. However, if something happens to your subcontractor while they are on the job and you have no insurance, you could be held responsible.
  • Changing insurance providers too frequently – If you jump from one insurance provider to another too quickly, you may lose out on things like customer loyalty discounts. You also don’t give yourself enough time to evaluate how well a policy is working for you.

Life comes with few guarantees. But one thing you can count on is that when you contact Statewide Insurance, you’ll receive the best quotes on only those policies that fit your specific needs.  Contact our brokers today and get the straight talk from experts who know contractors insurance no one else in the business!

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.
Filed Under: General Liability Insurance Tagged With: , ,

How Independent Contractors Benefit You

February 12, 2012 By

Independent contractors are a boon for employers. But sometimes knowing whether or not you have correctly classified your independent contractors for IRS purposes isn’t always easy.  Moreover, these kinds of workers also impact your business in ways that will require you to think carefully about the kind of insurance you will need to buy for your company.

An independent contractor is defined as an individual who contracts with a business to provide services for that organization. It’s important to know that this title should not be applied to individuals who are part of a department that has been outsourced to another firm.

Furthermore, it also important to be aware that an independent contractor does not have the legal status of an employee and can go by other names such as freelancer, consultant or simply contractor. When you hire a person who is part of another business operation, he or she could still be classed as an independent contractor.

Following are just a few of the reasons that more businesses are benefiting from the services of independents:

  • Technological advances – Computer technology allows for greater mobility than ever before and many jobs that once required an office setting to complete can now be done just as efficiently off-site.
  • Changing worker needs/demands – These days, workers want flexibility and greater work/life balance. They want to know the they can create schedules that conform with their lifestyle choices.
  • Cost effectiveness –  Because an independent contractor is not a regular employee, businesses don’t have to pay payroll costs such as federal payroll taxes, unemployment insurance premiums workers compensation premiums, overtime and employee benefits.

At the same time, you need to be aware that independent contractors require careful handling. You can still be held responsible for on-the-job injuries as well as complications arising from intellectual property issues. Finally, if you use independent contractors but treat them as employees, the IRS will require you to pay all back taxes owed with interest, plus a penalty.

If you are planning to hire contractors then your business needs both general liability insurance as well as a  workers compensation policy. Not having either one in place puts you and your business at risk for losses that may come about as a result of unforeseen events involving your contractors.

When you contact the brokers at Statewide Insurance, you can rest assured that you will not only be getting top-notch service but the best quotes on the best policies for your business. We know insurance like nobody else.  Let us show you the Statewide difference!

Photo credit: AscensionDigital
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.
Filed Under: General Liability Insurance, Workers Compensation Insurance Tagged With: , ,

The Importance of Handyman Insurance

February 10, 2012 By

As a self-employed jack-of-all-trades, getting all the necessary certificates and licenses isn’t cheap and can eat into your profits. You might be tempted to reduce–or even do without–handyman insurance but doing so leaves you open to losses that may put you out of business altogether.

When you take out a handyman policy, you not only protect your working assets, you also make yourself look much more attractive to clients who like the security that policy represents. They know that if something goes wrong on the job, you–and they–are covered. That you are insured will also give clients greater reason to trust your reliability which will mean more work for you.

Handyman insurance will also give you peace of mind. No matter how careful you might be on the job, you never know when you might suffer an injury that will force you to take time out to recover. With a good policy in place,  you won’t have to worry as much about how you’ll pay the bills while you’re off the job.  You’ll also be able to rest a little easier knowing that you’re covered against any mishaps that may occur on a jobsite, regardless of who’s at fault.

Your profession is one that typically requires you to carry tools–such as trestle tables and power drills–from job to job. Unfortunately, building sites are often the targets of thieves which means that your tools and the vehicle you use to carry them are all vulnerable to robbery. Handyman insurance covers you against the loss of your equipment so that stolen items don’t become a huge out-of-pocket expense for you.

The brokers at Statewide Insurance can help you decide which insurance policy suits your business best. Start off the new year right and contact us today for more information.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on carpet cleaning contractor’s insurance.
Filed Under: General Liability Insurance, Handyman Insurance Tagged With: ,

Carpet Cleaning Contractors Insurance: Are You Covered?

February 8, 2012 By

Carpet cleaning is one business where having insurance is an absolute necessity.  When you go into a client’s home or office, you run the double risk of damaging property and exposing individuals–including yourself and/or your employees–to potential health hazards.

The main type of insurance you need to have is liability coverage.  This will protect you and your business from messy financial problems in the event that something goes wrong and you accidentally damage a carpet, a rug, furniture or anything else belonging to a client. It will also cover you should that client–or any of that client’s associates–get sick as a result of any of the solvents, powders or other cleaning products you may be using.

It’s also a good idea to get your cleaning equipment insured as well.  Let’s say your steam cleaner, air mover and/or dehumidfier get damaged, worn out or stolen and you don’t have a policy to cover the loss. Then you’ll have to pay out-of-pocket to have your equipment replaced. And if you don’t have the money to do that, then you’ll not only be out of luck you’ll also be out of work.

And finally, there’s the all-important workers compensation insurance. Your clients are not the only people who could get sick or injured as a result of the services you provide. If you have employees, they need to be covered, too.   Workers compensation will ensure that your workers will receive the care they need should their health be compromised on the job and keep you from having to pay for medical costs.

If you’re unsure about where to start or which policies are best for your particular business, the brokers at Statewide Insurance can help you sort out any questions you may have and provide you with the best quotes anywhere.  We take pride in offering top-notch service for contractors only, so we know the industry inside out. Contact us and experience the Statewide difference today!

Photo credit: Ambro
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on carpet cleaning contractor’s insurance.
Filed Under: Carpet, Rug or Upholstery Cleaning Contractors Insurance, General Liability Insurance Tagged With: , ,

Electrician Insurance: A Bright Idea

February 6, 2012 By

Nobody has to remind you that as an electrician your work subjects you to significant personal and professional risks. Whenever you are on a job site, you’re handling materials that conduct electricity. Any miscalculation, no matter how small, could have dire consequences and even lead to death.

Electrician insurance bright Idea!

You may think that reliable equipment and protective clothing are all you need. But what about accidents? No matter how careful you think you are, you never know when something beyond your control might happen. What if  you come into contact with energized circuit conductors due to stray voltage caused by faults in a system? Or what if you’re exposed to an arc flash because of faulty switchgear?

No insurance–or poor quality insurance–puts you in the position of potentially losing everything you’ve worked for. If you’re injured you’ll not only be unable to work (and therefore lose income), you may also have to cover all or most of your own medical bills. And if you’re found to be at fault for an incident, you may have to pay restitution. Either way, you may be out a substantial amount of money and also find yourself permanently out of a job.

Then there’s the small matter of your tools: your pliers, wire strippers, cable cutters, and electrical testing equipment, as well as the vehicle you use to transport yourself and your equipment to and from job sites. Tools are expensive and if they get lost, stolen or damaged, you’ll need money to replace them.  Good quality electrician insurance can cover you against such events so that you can use your money for other things, like growing a one-person operation into a electrical contracting business.

The brokers at Statewide Insurance are here to help independent electricians like you buy the right policy from the right company at the right price.  If you’re uninsured or not satisfied with your current policy, let us help you get the insurance protection you deserve today.

Photo credit: imagerymajestic
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on contractor’s insurance.
Filed Under: Electrician Insurance, General Liability Insurance Tagged With: , ,

Tips On Face-Painting Insurance

February 4, 2012 By

If you are a professional face and body painter, then congratulations! You have what’s probably one of the most enjoyable jobs in the world. But all fun aside, you’re still in the business that requires you take out insurance to protect yourself and your clients.

For example: you never know when something could go wrong with the paints that you’re using. A client might have a bad reaction to them and become ill or some of your materials might end up in someone’s eye by accident. And as an artist who might be working at high profile events and festivals, the last thing you want is to have to worry about expensive legal battles that could put you out of business.

Liability insurance protects you and your clients against any possible injury or damage your work might cause so that you can focus on being your creative best. At the same time, because you are working on people’s bodies, you still need to exercise caution so that you:

  •  are working in the safest, cleanest environment possible with the best equipment
  •  don’t pass on contagious diseases, as between clients or between you and your clients
  •  aren’t perceived as engaging in sexual harassment or physical abuse, especially where children are concerned

When you are ready to make this important investment in your business, you need to be ready to ask the right questions of your insurance broker so that you get coverage you need. Here are some to get you started:

  • what does the policy cover and what are its exclusions?
  • how easy is it to make an insurance claim?
  • for what amount am I covered and what are the limits?
  • is there a fee per claim?
  • what is the policy regarding cancellations?
  • is my own negligence covered?
  • what about attorney fees–are they covered as well?
  • do any of the major face-painting groups–such as the Face Painting and Body Art Association (FPBAA)–use this insurance?

The brokers at Statewide Insurance are experts in all forms of contractors insurance.  We have the experience and know-how to help match you to a policy that doesn’t just work, but works best for you.  Why settle for anything less?

Photo credit: Louisa Stokes
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on face painting insurance.
Filed Under: Face Painting Insurance, General Liability Insurance Tagged With:

5 Important Questions Home Business Owners Need to Ask

February 2, 2012 By

Believe it or not, contractors who operate their businesses from home carry risks that are almost identical to those carried by big corporations. Regardless of whether it’s just you and the tools of your trade or you and a hired team of of employees or subcontractors, insurance coverage is a must.

If you have any doubts about whether you need a policy, here are five important questions you need to ask yourself about your business:

  • Home based contractors need to look at their insurance needs.

    Thinking about insurance?

    Can what I do cause personal injury or property damage? – Risks abound and your work and/or the work of your employees or subcontractors could potentially cause injury to others. Moreover, the very materials you use could end up damaging existing property.

  •  What is my business risk? – The answer to this question depends on your profession and the kind of work you do. Some home business owners may need a customized business owner policy whereas others may just need a simple commercial general liability policy.
  • Can I be held liable for injury or damage? – Even the smallest mistakes can land you in court. Liability insurance can protect your company assets if your business is sued for causing personal injury or property damage.
  • Are my labor and materials protected? – If your business takes you and your equipment into the field, you risk losing your materials to fire, theft, vandalism and bad weather or natural disasters. With builder’s risk insurance, you can protect your equipment from circumstances that are beyond your control.
  • Do I need worker’s compensation insurance? –  No matter how safe you think your worksite(s) are, your employees could still get  injured on the job. Workers compensation will cover work-related illnesses in addition to certain medical expenses, lost income and rehabilitation costs.

It’s dangerous to assume that just because you’ve had no problems in the past, you won’t have any in the future. The insurance experts at Statewide can help you determine the policy that’s right for your business. Our brokers are here to keep you covered so that you don’t lose your shirt: contest us today for your free quote.

Photo credit: nokhoog_buchachon
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on contractor’s insurance.
Filed Under: Contractors Insurance Tagged With: , ,

About Commercial Truck Insurance

January 6, 2012 By

Commercial truck insurance

Using a commercial truck? You'll need commercial truck insurance. Call Statewide Insurance Brokers.

If your business uses trucks to haul goods or other materials across town or across the country, then you need commercial truck insurance. No matter how good  a trucker’s driving record may be, trucking itself can be a dangerous profession. At some point, a trucker will encounter hazardous conditions on the roadway. Are you prepared?

Carrying a commercial truck insurance policy ensures that both the driver and any other motorists are compensated in the event of accidental injury or damage that may occur in a crash. The two major types of truck insurance that exist include general liability and physical damage plans.

General liability typically covers business employees and any independent truck owner/operators you may hire for a specific haul. This type of insurance policy will take care of damage sustained in an accident by the other motorist(s). This type of protection is required by law no matter the circumstances under which a commercial truck is being operated.

Physical damage coverage protects against damage done to your personal property–for example, any trucks you may own and use for your business–regardless of who’s at fault in the accident. A comprehensive insurance policy will cover you in the event of such unforeseen events as theft, fire, flood and earthquakes, all of which are among the many dangers that exist on the road.

When you buy commercial truck insurance, it’s important to make sure that your policy maximums are equivalent to your estimated repair or replacement expenses. Don’t forget to also factor in state and government restrictions when deciding on the level of coverage to purchase. The experts at Statewide Insurance can help you sort out these issues and determine which insurance plan currently on the market best meets your business needs: call or e-mail us today for an estimate.

Call Statewide Insurance Brokers at (888) 258-0272 to get fast quotes on commercial truck insurance.
Filed Under: Commercial Vehicle Insurance Tagged With: , , ,

Negligence or Pollution?

December 1, 2011 By

los angeles general liability insurance

If you're a California contractor, understanding environmental issues is a vital part of general liability insurance.

The Thomson Reuters News & Insight website reports that the California state Supreme Court recently ruled that “a commercial general liability policy’s pollution exclusion barr[ing] coverage of third-party damages from environmental pollution also governed first-party property insurance policies.”

The case involved the Villa Los Alamos Homeowners Association (VLAHA); Cal Coast Construction (CCC), a firm the VLAHA had hired to do property maintenance work; and State Farm, the VLAHA’s insurer.

In a residential building that the VLAHA operated and managed, CCC scraped the acoustical ceilings and stairways, causing “asbestos fibers to be released into the air, individual units, and the building’s indoor and outdoor common areas.” As a result, “a local environmental agency ordered the association to perform comprehensive cleanup of the building.” The total cost came to $650,000.

The VLAHA complied, but asked State Farm to cover expenses. The insurer refused, citing a pollution exclusion in the VLAHA’s policy “which covered both first party robbery losses and third-party business liability claims.”

The association won a negligence suit against the CCC and was awarded $600,000. But it lost another suit it filed against State Farm for “breach of contract and bad faith.” VLAHA argued that “a one-time ordinary act of negligence failed to constitute environmental pollution.”

The California Supreme Court ruled that State Farm was within its rights to refuse payment because the work CCC had done for VLAHA “occurred over several days and resulted in sufficient release of asbestos fibers into the air contaminate the building complex in the adjacent outside areas, constituting environmental pollution.”

Statewide Insurance Brokers provides general liability insurance. Call us today with questions and to get fast, free quotes.
Filed Under: California General Liability Insurance, General Liability Insurance Tagged With: , ,

What Limited Liability Really Means

November 4, 2011 By

When a business owner operates through the structures known as an LLC, it is usually to gain what is called “limited liability.” As Journal-News.net states, “limited liability means that an owner or investor cannot lose more money than the amount [he or she has] invested or personally guaranteed.”

pen and paper

What role does limited liability really play in protecting a business owner?

But what role does limited liability really play in protecting that business owner?

To begin, there’s no foolproof way “individuals can completely shelter themselves from all liability that may arise with the company.” However, if the organization is structured carefully and well, it “can protect the personal assets of members and participants from liability arising out of the acts or omissions of the organization” or “of other members or participants.”

This means that all bylaws and operating agreements and articles should be carefully drawn up to assure that “proper indemnities are provided by the company.” Ensuring that a business entity is properly insured and in good financial health are also important “to limiting the liability of members and participants.”

Getting limited liability could be as easy as filling out a form. However, maintaining it “may require following some administrative formalities” that many business owners dislike but are still very necessary. Some of these may include:

  • Creating and maintaining operating agreements
  • Keeping “separate and accurate accounting records for the business”
  • Disallowing the co-mingling of “money, other assets, income or expenses of the business and its owners”
  • Holding “regular, documented owner/board meetings”
  • Putting all “agreements and policy decisions in writing,” even when they are “between the business and its single owner.”

For small business owners in particular, these formalities may seem excessive. But proper structuring–which is best done with the assistance of good attorney–will go a long way towards ensuring the best protections possible.

Obtaining the proper insurance is the best way to avoid complications arising from the day-to-day actions of doing business. Call Statewide Insurance Brokers at 888-258-0272 today.
Filed Under: General Liability Insurance Tagged With: , ,