Under a Contractor General Liability insurance in California, the insurer is obligated to pay the legal costs of a business in a covered liability claim or lawsuit. Covered liability claims include bodily injury, property damage, personal injury and advertising injury (damage from slander or false advertising). The insurance company also covers compensatory and general damages. Punitive damages aren't covered under Contractor General Liability insurance policies because they are considered punishment for intentional acts.

In today's litigious society, even small accidents can result in large lawsuits. That's why Contractor General Liability insurance in California, along with property and worker's compensation insurance is essential for business whether small or large. Contractor General Liability insurance in California protects the assets of a business when it is sued for something it did or didn't do to cause an injury or property damage.

Contractor General Liability insurance in California can be purchased separately or as part of a business-owner's policy (BOP). A BOP bundles property and liability insurance into one policy; however, the liability coverage limits are generally pretty low. Businesses that need more coverage usually purchase liability insurance as a separate policy. The amount of coverage a business needs depends on a couple factors. First of all is perceived risk. Business owners should first consider the amount of risk associated with their business. For example, a business that manufactures heavy machinery is at a greater risk of being sued than a company that manufactures linens and would therefore need more liability insurance. A second factor is the state in which you operate. Businesses that operate in states with a history of awarding high damage amounts to plaintiffs typically need to carry liability insurance with higher coverage limits. An insurance broker can offer guidance in this area.

Taking precautions before an accident can help keep your liability and your insurance rates down. All businesses can take certain steps to lower the chance of a liability insurance claim. For example you can set a high standard for product quality control.

Make sure all company records are complete and up to date. Be sure employees are properly trained. Get safety tips for your type of business from your insurance company. The link below is a suggested site for more information on Contractor General Liability insurance in California.