As a business owner, it’s your responsibility to look after your customers and make sure that your projects are completed on time and under-budget. While some business expenses are simply unavoidable, most contracting business owners are always on the lookout for places they can save—and if they have a high insurance bill, they may have considered cutting back on their general liability insurance in California. After all, if you have workers’ compensation, you’re just doubling up on coverage by purchasing general liability insurance because they both cover lawsuits—right? Wrong! Though general liability insurance and workers’ compensation both have legal components, they are both very different protections.
Workers’ compensation is a legal requirement of doing business in every state. So, if you have a single employee, you have to maintain workers’ compensation insurance. Workers’ compensation protects your employees if they are injured by providing compensation for medical bills and lost wages if they are hurt on the job. Workers’ compensation can also help you handle lawsuits brought on by employees and their family members if they believe that unsafe work practices caused their injuries.
General contractor’s insurance protects you and your employees from threats outside of your business— namely, customers and clients who are injured on your property, who have a piece of their property destroyed by you or an employee, or who slander or defame your business. Though general liability insurance for contractors in California is not required by law, smart business owners and contractors always carry it because they know that without insurance, they will personally be held financially liable for their own legal representation fees, which can quickly compound and become unmanageable.
Does your business have general liability insurance and workers’ compensation? If not, you may be putting yourself and your livelihood in serious jeopardy. Give DJM Insurance Services a call today at 800-763-0698 or browse our website to learn more about your coverage options!