General Contractors General Liability Rates

DRButler

I am located in CA and just heard that another general contractor who does essentially the same type of work as my company and about the same size pays only 6 thousand a year in general liability while we pay 60 thousand, what is up with this?? We are being eaten alive by insurance and taxes, any advice on how to save money on this would be greatly appreciated.
Melissa
Administrator
DRBA Inc.

Chris Johnson

If you are a General B license you will pay the premium, have a specialty license and pay about 10% of what you are paying now.

I discovered this last year, I have both a B and C specialty license, my agent told me to stay within the realm of my C license and insurance is affordable, you want to work under your B...time to pay the piper, a lot of B holders take on jobs they have no clue what they are doing, so they will sub out the work (making them responsible) or do work they are not qualified for but can legally do under their B (which makes them responsible).

This is sue happy California, when someone sues, they sue everyone...starting with the GC...that's you. Insurance Co.'s are trying to lessen the risk with high premiums hence your 60k a year.

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Chris

notillegal

wow! $ 60,000 now I'm glad I live in NH. I pay $800.00 a year for 2 mil. In coverage as a sole proprietor. So much for moving to cali when tv kids graduate.