Insurance is one of the best things that we have ever come up with. It is an amazing concept, and not a lot of people know about it—especially those who are younger. Let us take car insurance as an example. You get a brand-new car out of the salon, and you drive it off.
A couple of days pass, and you are ecstatic. The driving is smooth, there are sensors in the front and the back, and it feels like you are in a spacecraft. You spent a lot of money to buy it, and you hope that it will be in pristine condition for the next ten years. Click on this link for more info.
However, life sometimes has a way to make things much harder than they need to be. Let us say that you take it to go get groceries, and you park right in front of the store. As soon as you come out with the groceries, you see that somebody crashed into your car from the back and drove off, and you do not have insurance.
That is one of the worst feelings in the world. You must pay out of your pocket again to cover up the expenses because someone else made a mistake. Having insurance, on the other hand, will be quite helpful because another company will cover the expenses. Here is how that concept works for California contractors.
How does it work?
A contractor, general liability insurance policy is quite useful if you are working for this kind of company. First, there is a protection plan that will financially compensate you for any type of bodily injury. The same thing will be valid if there is property damage or other medical payments that need to be covered.
Of course, getting this kind of plan is your responsibility, and you should not expect your company to do it. For California specifically, the prices can range anywhere from 800 dollars and up. If you are getting under 30 grand per year, then the policy will range anywhere between $1000 and $1500.
If you earn double, then the cost of the policy doubles too. Finally, for those people who earn more than 100 000 dollars per year, the cost of general contractor insurance is manually calculated. This all depends on the insurance company.
There are different criteria that are taken into consideration before you get your premium. Most of the time, these factors are your age, credit score, as well as the number of years that you have been in the business. Plus, sometimes there can be hidden costs such as taxes and fees, which might make it a bit more expensive than you initially thought.
Why is it useful?
You can think of this policy as an alternative to life insurance, with added benefits. First, there is the coverage of bodily injuries. This category is quite wide, but there are a few main things that are always true. You will get financially compensated if you get any kind of injury.
The same thing is true if you get sick or if you catch a disease that is covered by your plan. Additionally, even the occurrence of death is taken into consideration, and your family will get the finances. Next on the list is property damage.
This is any kind of destructive act that happens to the piece of real estate, as well as the loss of use. Usually, the limit of the compensation is set to one million dollars per occurrence. This is a large sum of money. In the realm of medical coverage, then the limit is somewhere around 5 000 dollars.
How do claims work?
You should know that there are claims-made and occurrence-type claims. The first ones happen when something happens to you while the policy is active. Let us say that you insured yourself for ten years, and during year five, you break a leg. That is when claims-made goes into effect.
On the other hand, occurrence types can be filed during the period the policy is valid, but it does not matter when the claim is filed. This can be an accident or working in unsafe conditions. If you work in a hazardous area and you find out a year later, then you can file an occurrence-type claim.