General contractors who build commercial buildings and offices, residential homes, or apartments, might chose to carry an umbrella policy, making premium payments to insure that they business does not go under when a major catastrophe hits. A crane falling because it was improperly secured, or a fire started by accident can wipe out millions of dollars worth or property, and the smart contractor knows that his general liability will be covered by his insurance.



Builder's risk insurance takes the unknowns out of the equation for the future and draws the builder into a ring of safety where he is protected by a team of professionals on his side. There are no words to describe being on the wrong side when it comes to insurance, as legal processes can take years to resolve through litigation and appeals, and during this time holes of worry are eaten into the pit of the contractor's stomach. Bank accounts dwindle over time because of the steady outflow of money to pay for legal advice that never seems to be enough.



Specialty contractors and subcontractors are sued from the top down when something doesn't go right. It could be an accident, or it could be shoddy work performed by an employee that is on drugs or alcohol, or is just unskilled in his work; a fact that cannot always be detected in advance when hiring new workers. Such workers shift from job to job, performing work with poor quality, but when the quality is hidden beneath layers of other work, it is difficult to spot. Inspections are a second line of defense when pre-employment screening fails to detect poor work performance in the past with other employers. Hopefully, employers will have inspectors to observe the results of work before it becomes concealed, as layers of work built upon poor quality increase the cost of future repairs exponentially, and this is true of many fields, not just construction.

Obtaining general contractor insurance in California is a requirement and protects the contractor against the future unknowns in the work place. No one can predict what will happen, and many contracts require the contractor to be bonded anyway. Don't take a chance with your future.