Serving California Contractors

Welcome To CBIA Insurance

Buying the right insurance for your business can be time consuming . At CBIA we specialize in helping construction industry professionals choose the insurance that best fits your unique needs. 

CBIA offers individual service and we don't just sell you insurance, we explain what you are buying and give you options that will provide the best coverage for your business.


 

 

 

 

 

 

"We specialize in working with construction industry professionals"

 

 

Are you Putting Yourself at Risk? Liability Insurance Protects your Company from Lawsuits

Liability insurance is for more than just ensuring that your company is in compliance with local laws and regulations. Sure, being insured will help you win more contracts, and it will give you the peace of mind that your employees are covered in case they are injured on the job… but liability insurance can also keep your company from being exposed to massive fines and lawsuits should something go wrong. The average construction-site incident in 2013 involved more than $1 million in medical and legal bills, and significantly impacted the operations of the company involved. Could your company survive millions of dollars in legal expenses that arise from a liability issue? With liability insurance, you don’t have to constantly worry that a small accident will snowball into a major disaster that can put you out of business.

What happens if there is an Accident?

Imagine, for example, that you are doing a small satellite-dish installation job when one of your employees falls off the roof and is seriously injured. In the subsequent months, the employee in question has to go through thousands upon thousands of dollars in immediate medical care and rehab – and their insurance company will look to your liability insurance to reimburse them for their medical expenses. If your company is not appropriately insured, you might be held personally liable for your employees’ injuries (especially if you misrepresented their insurance status) or your company could be sued and taken to court over the full amount of the medical bills along with legal bills and fines.

On the other hand, if your company has liability insurance, your liability insurance will protect your company in the event of an accident or injury to your or an employee. Liability insurance also covers your company if there is damage to the property that you are working on – a common occurrence when working on older homes where the plumbing and structural systems might not be documented properly or in very good condition. Even if you do everything by the book, and you are as safe as you can be, something might go wrong.

Criminal Penalties for Uninsured Contractors

Being uninsured is more than just bad business, it can be a criminal offense! In November of 2014, the City of San Diego cracked down on unlicensed contractors by arresting more than 100 people that responded to ads looking for licensed contractor work. Many of the contractors had criminal histories, and all were fined heavily and given misdemeanors for attempting to contract on jobs over $500 without a contracting license.

For property owners, the penalties of hiring people without liability insurance can be serious. Homeowner’s insurance usually won’t cover contractors that are operating illegally, so the homeowner could find themselves being dragged to court if there is an accident. Also, there is little or no recourse that the homeowner has if their property is damaged by the uninsured contractor – and they can’t have their additions or renovations approved and permitted. While unlicensed and uninsured contractors might seem cheaper at first, since they are able to bid extremely low prices as a result of having lower expenses and not having to maintain a valid license, they are actually very expensive in the long run because they could create a legal and financial disaster for the homeowner if something goes wrong.

General Liability Helps Win Contracts

If you don’t have liability insurance, potential clients will turn down your proposals because they don’t want to expose themselves to the risk that they would be taking on by hiring an unlicensed contractor to do work for them. Having general liability insurance does more than provide a safety net for your company, it also makes it possible for you to bid on a wider range of jobs and ultimately develop your business into a more competitive contractor agency.

When you start working on a project, your insurance carrier will provide you with a certificate of insurance that you can show your clients to assure them that you are covered completely in the event of an incident. Make sure that your insurance company has a way to get in touch with them to receive these certificates quickly – since you might end up in breach of a contract if you are unable to supply the client with your certificate at the beginning of the contract. Most of the time, general contractors will limit access to their job sites unless everyone is able to display their certificates of general liability insurance upon arrival.