As the owner of a carpentry business you take on many responsibilities. You probably spend most of your time at one job-site or another another. Whether you work with corporate customers or residential clients,you must keep track of each project and all of the details. As part of of those details, you must make sure your business is fully protected. Risk and liability can arise in many ways and you need to have the right types of commercial insurance. You need to make sure you cover other third partes in case they are injured as a result of the work you perform and make sure you cover yourself and your own employees in case of an accident or injury.
As an independent agency, FirstCapital can help you find the right insurance as we write insurance from various carriers through the business relationships that we have formed. Unlike other Insurance agencies FirstCapital is owned and operated by a practicing attorney in California who will provide a FREE RISK ANALYSIS AND POLICY REVIEW as part of their search for insurance.
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- Competitive Rates and Premiums
- Quotes, Binding Authority and Insurance Certificate in Minutes
- Surety Bonds
One Unique aspect of the construction business is the Action Over Claims that can render your business self-insured for injuries to your employees and the employees of your subcontractors notwithstanding any workers’ compensation insurance you may have. If your current agent has not spoken to you about such gaps in coverage, or you do not know or understand what an Action Over Claim is, you need to call us immediately as we can insure you are covered under such instances. Don’t be shy call us. Most contractors do not know about Action Over Claims until it is too late and they are on the hook for all the damages of an injured worker. But, remember you can insure against such risks.
Unlike many agencies we can generally write insurance for New Businesses and for those with a gap in insurance coverage. Others won’t even consider you claim but we can generally write such insurance. Certainly any insurance history you have and time without claims will be considered as a credit to your advantage when the underwriters consider your premiums.
GENERAL LIABILITY INSURANCE (CGL)
All independent carpenters and small carpentry companies should carry general liability insurance. This coverage helps protects you from unexpected events, problems and potential hazards. If you work from a carpentry shop that customers visit, general liability protects you if someone gets hurt while they’re there. It also protects you if the customer’s property is damaged on your premises. It protects you from losses that might arise due to natural disasters, product liability and advertising liability as well. This is a solid, all around insurance plan for small businesses that grows with your needs.
BUSINESS OWNERS POLICY
A business owners policy (BOP) includes general liability and expands to cover business property as well. This insurance plan can be tailored to meet the specific needs of your carpentry company.
Equipment Breakdown – Whether you work from a stationary location or you go to each individual job, when your equipment breaks down it can be costly. Repairing or replacing the equipment may not be in the budget, and you can lose income if machines aren’t working as well. A BOP protects you from these types of failures by covering the costs of repairing or replacing your professional work equipment.
Buildings and Contents – When you work from a shop you rely on having the building available and fully functional so that your business can operate. You also may have important physical assets inside such as office furniture and workshop machines. A BOP can take care of the costs that come up when your buildings and their contents are damaged or destroyed, such as from a natural disaster.
Business Income and Extra Expense – If your business structures or content are destroyed you can lose a lot of income due to not being able to perform your work. A BOP can provide for lost business income or help you with the added expenses of renting temporary work spaces and machines.
Products and Completed Operations (Included in General Liability) – As acarpenter there may be times when you complete a job but it comes back with problems at a later date. If this happens, a BOP can be there to help.
Electronic Data – A BOP helps cover the expenses involved with recovering lost electronic data files that are critical to the operation of your business.
Newly Acquired or Constructed Buildings – As your business grows you may decide to add more workshop space or an area to display work to potential customers.
Valuable Papers Protection – If you keep valuable papers in your office, such as original blueprints or contracts, a BOP can protect you if those are damaged or destroyed.
Employee Dishonesty Coverage – Employee theft or dishonest practices is an unfortunate fact of business. Your BOP policy can protect you from losses caused by unauthorized credit card uses or funds transfers and tangible property theft among other things.
COMMERCIAL AUTO INSURANCE
Business auto insurance protects your company if there is an accident. It can cover vehicles used for business purposes even if they are not company vehicles. You also may need Inland Marine Insurance which can protect equipment that is not intended on the road and other personal business property associated therewith.
WORKERS’ COMPENSATION INSURANCE
Workers’ comp insurance is required by law when you have employees. It protects you and them from having to pay for medical care and expenses if they are hurt on the job. We also will advise as to Action Over Claims as mentioned above. Most Workers Compensation insurance exclude third party claims. Many time the General Contractor, or hiring contractor have created an unsafe workplace for the subs an they are responsible as third parties for the injuries to your employees or the employees of your subcontractors. If the General Contractor or the Hiring Contractor has a Hold Harmless Clause in your contract (most do) that can put the legal responsibility for such claims back on your plate even though you have worker compensation. You need to guard against such risk. If you currently have an insurance agent they probable have never mention such risk or gaps i your current insurance. Call us (818) 451-3878 and we can fully explain these types of risks that are very prevalent in the construction industry.
Surety bonds act as guarantees that you can fulfill a contract. You may be required to be bonded before you can win a government or large corporate carpentry contract.
Your General Liability Policy probably does not cover Faulty Workmanship. Most construction companies, contractors and tradesmen aren’t even aware that such coverage is available. When there is a mistake on the job arising out of faulty workmanship, materials or products you incur a major cost to fix such problems – not to mention the damage to your reputation and lost business as a result. Your best move is to fix the problem. With Faulty Workmanship coverage you hedge your losses for such mistakes. You will have the ability to cover the cost of the mistake and your client gets the job done right. You have saved your reputation and the client will call you again.
CALL US FOR A FREE RISK ANALYSIS AND POLICY REVIEW BY AN ATTORNEY