The City of Los Angeles requires contractors to submit insurance documents electronically. The City’s online insurance compliance system KwikComply is designed to make submitting information quick and easy for insurance agents and brokers. It uses the standard insurance industry form, ACORD Form 25, to provide security and universal acceptance. The KwikComply process is also paperless and offers a secure transaction environment. By using this system, contractors can quickly and easily submit documents and keep track of all approval statuses.
General liability insurance
The first step in buying a liability insurance policy for your construction business is to determine the limits of your coverage. General liability insurance policies usually cover a certain amount per occurrence and $2 million for the aggregate. This limit may differ depending on your specific needs. You can also purchase excess liability coverage to cover damages that may exceed your base policy limits. If you have a large project planned, you may want to purchase a separate excess policy in order to cover any additional costs.
Errors and omissions insurance
Errors and omissions (E&O) insurance protects a business from liability for negligence claims. An error is defined as a failure to exercise reasonable care or the failure to do something that could have caused damage. When an error occurs, the insurance will cover court expenses and settlements up to the limit specified in the policy. This type of coverage is especially important for business owners who provide professional advice to the public.
Property damage coverage
In California, property damage coverage is required by law. However, California Insurance Regulations do not require property damage coverage for all contractors. These regulations are implemented through state legislatures and must pass through a public comment period. Therefore, it is important to understand the specific requirements for California contractors. Broad Form Property Damage coverage applies only to work vehicles that are driven off-road within City of Los Angeles Harbor Department premises. If you are only using your vehicle for commuting purposes, you can opt to not carry the coverage.
Cost of general liability insurance
While general liability insurance for contractors costs more than other types of business insurance, it still remains affordable. Most contractors pay about $700 to $1,200 a year. The cost of this insurance policy can vary greatly depending on several factors, including location. Contractors working in major cities face higher accident risks. The size of their crew and the number of job sites they work on also increase the cost. Insureon recommends that contractors combine their insurance policies into a single business owner’s policy. This type of insurance costs less than the two policies separately, and often comes with the added benefit of a low monthly premium.
Contractors should have the right level of coverage. In California, a standard contractors insurance policy should include Broad Form Property Damage coverage. This type of coverage protects a business from claims that result from accidents involving vehicles used in the course of their business. This type of coverage is not required for commuting purposes, but it is a contractual requirement. Here are some of the required coverages for contractors insurance in Los Angeles.