Cistern Contractors Insurance California Policy Information
Cistern Contractors Insurance California. Cisterns are rainwater catchment and storage systems that can provide both private residences and commercial operations with significant quantities supplemental water.
Cistern contractors excavate, install, clean, and repair underground rainwater collection and storage systems. A cistern may also be filled from a water truck in areas with unreliable water delivery systems. Most require installation of a pump to access the stored water supply.
Construction of a cistern begins with excavation and reinforcement of the area where it is to be installed. A metal, plastic, or precast concrete tank may be inserted, or one may be constructed of cast-in-place reinforced concrete or masonry. A sealer is applied to the interior of the cistern to prevent leaks and to make cleaning easier.
Finally, a system of gutters and downspouts is installed to direct rainwater into the cistern. Once installed, a cistern should be inspected at least annually to check for leakage, sediments, algae and other contaminants.
Repair work may include the use of augers with rotary knives attached which are fed into the cistern to cut away roots that have penetrated it. Some contractors may provide related services such as grading of the land, land clearing, or hauling and disposing of earth and debris.
As water provided by cisterns is primarily used for purposes other than drinking, households may use a cistern to acquire water to be used for bathrooms and garden use. Commercially, cisterns play an important role in irrigation, and as such, greenhouses frequently rely on them.
Cistern contractors can install, maintain, and repair a broad variety of cisterns. With the demand for cisterns growing, this can be both a profitable and stable commercial venture. Like any other business, however, cistern contractors have to consider how to protect their financial health in the event that they fall victim to circumstances beyond their control.
What kinds of cistern contractors insurance California might be required, and why is it so crucial to be adequately insured? Discover more in this brief guide.
Cistern contractors insurance California protects businesses from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Do California Cistern Contractors Need Insurance?
Cistern contractors will take pride in their skills, and go to great lengths to deliver excellent work and manage their business well. All the hard work that goes into building a successful business can, however, be undone at virtually any time unless you are protected by excellent insurance coverage.
As a CA cistern contractor, you will have to take universal risks into account, but you also face industry-specific risks. Even with security systems in place, for instance, your business could be impacted by a theft or an act of vandalism.
Even if you strictly adhere to health and safety protocols, an employee could suffer a workplace injury ' and even if you deliver excellent work, a client could file a lawsuit alleging otherwise.
Then, you have to consider the possibility that your commercial premises could be hit by an act of nature, like a wildfire or an earthquake. There is nothing you can do to prevent natural disasters. It is not difficult to imagine what kind of damage any of these perils could inflict.
Thankfully, cistern contractors are not powerless in the face of all these risks. By investing in a comprehensive cistern contractors insurance California program, they can make sure that they will not be saddled with massive financial losses even if a major peril were to cause a serious setback.
What Type Of Insurance Do CA Cistern Contractors Need?
While you can be certain that you need several types of insurance to shield your business from devastating financial consequences, the precise kinds of coverage that will best serve you depend on a variety of factors.
The location of your CA business, the value of your equipment, your number of employees, and the size of your company all influence your insurance needs as well as the associated cost. Because of that, it is crucial to talk to a commercial insurance broker who is familiar with your industry.
The core types of cistern contractors insurance California firms in this industry will benefit from include, meanwhile:
- Commercial Property: Should your business premises fall victim to unforeseen circumstances that include theft, vandalism, and acts of nature, commercial property insurance will pay for a significant portion of the associated costs. Your physical building and the assets therein are both covered.
- Commercial General Liability: Also called business liability insurance, this type of cistern contractors insurance California coverage defends your company from financial losses associated with third party lawsuits. If someone claims that your company's activities or negligent work led to property damage or bodily injury, this kind of insurance covers the resulting legal expenses.
- Workers Compensation: This kind of insurance serves to simultaneously protect your business and your employees. If an employee is injured on the job, their medical bills and any lost wages will be covered. In turn, carrying this type of coverage minimizes the risk of resulting litigation.
- Commercial Auto: As a cistern contractor, you will unquestionably use vehicles in a professional context. Trucks, vans, and even cars that are used for commercial purposes are not covered by personal auto insurance policies, and you will need commercial auto coverage for them.
Your individual business may, however, face additional threats that mean you would benefit from a wider range of cistern contractors insurance California coverage.
Only a commercial insurance broker who understands both your industry and the risk profile of your particular business can help you craft the insurance plan that will optimally protect your cistern contracting company.
CA Cistern Contractors' Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access. Outdoor storage may present vandalism and attractive nuisance hazards. At the job site, excavation and construction operations pose numerous hazards.
The area of operation should be restricted by barriers and proper signage to protect the public from trips, slips and falls over debris, equipment, or uneven ground.
Digging can result in cutting utility cable, damaging property of the utility company and disrupting service to neighboring residences or businesses. Absence of detailed procedures to determine utility locations and to research prior uses of the land prior to digging may indicate a morale hazard.
Construction sites create an attractive nuisance hazard, especially if work is close to residential areas. Job sites should be secured.
Personal injury exposures include assault and battery and invasion of privacy. Background checks should be conducted for any employee who will have regular contact with customers. The use of subcontractors as well as any contractual liability exposures should be examined.
Completed operations exposure can occur from faulty workmanship or improper installation if the cistern is not properly installed, resulting in bacteria, leaks or water damage.
Environmental impairment exposure can be high if the contractor pumps wastewater out of storage tanks or removes old tanks. Buried tanks may gradually leak, causing serious contamination of the soil and possibly groundwater.
Spillage and leaking of pollutants can result in high cleanup costs and fines. The contractor must comply with all federal, state and municipal requirements. Proper written procedures and documentation of both the transportation and disposal process are important.
Workers compensation exposures can be severe. Back injuries, hernias, sprains and strains can occur from lifting, setting up retaining walls or trenches, installing tanks, or working from awkward positions. Collapse of retaining walls or overturn of equipment may result in severe injury or death from crushing or suffocation.
Cumulative exposure to the high-decibel operations may result in permanent hearing impairment. Work with hand tools, large, heavy machinery, or the carelessness of fellow employees can result in injury such as cuts, scrapes, or puncture wounds. Additional sources of injury include electric shock, foreign objects in the eye, repetitive motion injuries, temperature extremes, and auto accidents during transportation to and from job sites.
The absence of good maintenance, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard.
Property exposures at the contractor's own location are usually limited to an office and storage of materials, equipment, and vehicles. Tanks waiting to be installed are bulky but present little likelihood of damage from fire, inclement weather, or theft. Property stored outside may be a target for vandalism.
Inland marine exposures include accounts receivable if the contractor offers credit to customers, contractors' equipment, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. There may be computers for tracking inventory. Backup copies of all data should be stored off premises.
Contractors' equipment includes employees' tools and equipment that may be rented, leased or borrowed from others for specific jobs. Excavation equipment and tanks can be large and difficult to transport without adequate loading, tying down and unloading procedures. Ground at the construction site may be uneven.
Equipment may strike underground objects or utility cables, fall into holes or pits, slip or fall into mud, water or sinkholes, be damaged in rock, land, or mud slides, or burst into fire from overload. Materials or equipment left at job sites may be targets for theft and vandalism.
If the contractor rents, leases or borrows equipment or rents, leases or loans equipment to others, the lease contract should specify responsibilities for providing insurance.
Crime exposures are from employee dishonesty, including theft of customers' goods by the contractor's employee. Background checks, including criminal history, should be performed on all employees handling money.
There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. If customers pay the contractor at the job site, receipts should be provided.
Commercial auto exposures can be high due to the transport of oversize tanks and equipment which require special tie-down procedures. Drivers must be experienced in transporting these items to prevent overturn and damaging other vehicles.
In rural areas, roads may be narrow and the ground uneven, increasing the risk of collision and overturn. There can be spills from hazardous waste if the contractor pumps wastewater out of storage tanks or removes old tanks and transports them to a disposal facility.
All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted.
Vehicles must be well maintained with records kept in a central location. Drivers may need a hazardous materials ("hazmat") endorsement to transport wastewater removed from cisterns.
Cistern Contractors Insurance California - The Bottom Line
To protect your company, employees and customers, having the right cistern contractors insurance California coverage is essential. To discover what kind of options are available to you, how much coverage you should have and the premium - speak to a reputable commercial insurance agent.
California Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur and you considering having your operations located in California, it's essential that you have a full understanding about the economy of the state, as well as the regulations and limits that are in place for commercial insurance.
If you are considering opening up a business in the Golden State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Trends For Businesses In California
In terms of job creation, the state of California exceeds rate of job growth in the United States; however, as the state's metropolitan areas are reaching employment capacity, job growth is starting to slow. In 2017, the rate of growth was 2.1 percent, which is the slowest rate of growth since 2011; but it is still expected to increase by 1.8 percent by the end of 2018, and 1.2 percent by the end of 2022.
In the month of April, the unemployment rate in California dropped to 4.2 percent, which is a record low. This unemployment rate is expected to remain consistent for the rest of the calendar year; however, it's forecasted that the rate will start to increase in 2022.
The strongest labor market in the state is in the Bay Area, where the unemployment rate was 3.4 percent in 2017. Southern California follows, with an unemployment rate of 4.5 percent in 2017. In the Central Coast region, the rate was 5.4 percent and in the Central Valley, it was 6.6 percent. While the unemployment rate is considered high in these areas, they have decreased dramatically over the last 12 month period.
The industries that are expected to see the most growth in CA include:
- Information Technology
CA Commercial Insurance Regulations And Limits
The California Department of Insurance regulates insurance in the Golden State. In the state of CA, commercial liability insurance is not required; however, since the state does not cap rewards for liability law suits, business owners are wise to invest in this type of coverage. The amount of coverage recommended varies depending on the size of the business and in the industry.
Workers' compensation insurance is the only type of coverage that business owners are required to have. This applies to any organization that employs a salaried or hourly staff, even if that staff only consists of one employee. Furthermore, if an employee is injured or becomes ill as a result of work, business owners must pay for CA workers' comp benefits.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
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- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
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- Drywall Contractor
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- Glazier Insurance
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- Oil And Gas Well Drilling Contractors
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- Stone And Tile Installer
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- Swimming Pool Service And Maintenance
- Tool Grinding And Repair
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- Tank Cleaners
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- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.
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