INSURANCE WOES

General liability and workers compensation insurance cost have gone up!

The State of California has raised the benefit amounts that injured workers will be entitled to receive. This has caused many insurance companies to stop writing workers compensation insurance in California. The remaining companies are passing this increase through to their insured. Industry wide, these increases are averaging 20-100%.

The recent events of September 11^th have contributed to large increases in general liability insurance costs. The reinsurance firms took the largest hit in the terrorist attacks. These firms (those that are still in business) have raised the rates to the insurance companies that offer general liability and auto insurance. These companies are also passing their increases through to their insured. The recent spate of “Black Mold” cases have also led to unprecedented increases in general liability costs. Many insurance companies have pulled out of the California market entirely. Those that remain have raised their rates. These increases are averaging 25-200%.

What does this mean to you, the consumer? It goes without saying that businesses cannot absorb these increases. These costs must be passed through to the end user in the form of higher prices. Unfortunately, there will be many businesses’s that will go uninsured, as they simply cannot pay these higher premiums. Many of these companies offer services to customers at bargain rates. These customers often are not educated about the need for their contractor to be and insured (and licensed). What this customer fails to recognize is that without adequate insurance, the customer is at risk for worker injuries and liabilities.

What will happen when a worker injured is injured or there is a liability claim against the contractor? The worker will most likely file a lawsuit against you and your homeowners insurance and the liability claim will almost certainly fall back on you and your homeowners insurance (who more often than not, will deny coverage). An informed customer will always request documentation of insurance (both general liability and workers compensation) from their contractor. This documentation will be in the form of a certificate of insurance written directly by the insurance company. To further protect themselves, informed customers will demand that they be named “additionally insured” on this insurance certificate.

No one wants to pay more for services or products than they have to. However it does not make any sense to risk what for most is their largest asset simply in order to save a few dollars. Dealing with a contractor that carries the necessary limits of insurance will be one way for you to have the security of knowing that this contractor has the means to resolve any problems that may occur and will be around in the future to further service your needs.

Stone Creek LandWorks carries $2,000,000 in general liability insurance and the state required limit of $1,000,000 in workers compensation insurance.