The short answer: stuff happens. California is no different than any other state where that’s concerned. Stuff happens. Stuff you didn’t anticipate. Stuff that can end up costing someone a lot of money, and you don’t want that someone to be you. General liability insurance is a solution.
Contractors face the same risks as contractors everywhere else. An accident at your place of business or at a work site could result in injury or property damage and a lawsuit against your business. The work that contractors and subcontractors do can be dangerous. Excavators and electricians and roofers and people who work with power tools or heavy equipment face far more dangers on the job than the average office worker, for example. California general risk protection can shield you from being bankrupted by a genuine worksite mischance.
Customers and contractual workers you work within California anticipate that you will be secured by general obligation protection. They’re probably not worried about what would happen to your business if you lose a lawsuit. They simply want to make sure that if you get sued and lose, you will be able to pay up. They may even require you to carry a certain amount of general liability coverage as a condition for working with them. The type and amount of insurance your business carries may be the deciding factor in whether or not you win a contract.
Part of your insurance strategy
California General liability insurance is an unquestionable requirement for a contractual worker, you need a general protection technique that secures your business in various ways. Your system will incorporate Worker’s Compensation and also broad obligation protection, and may likewise incorporate more specific protection for circumstances not secured by both of those. You may also want to consider excess/umbrella coverage, insurance for materials and tools in transit from one location to another, and builder’s risk coverage.