The C-46 Solar Contractors classification is another high-risk class, and California is loaded with solar contractors up and down the state. According to the CSLB Description of Classifications:
A solar contractor installs, modifies, maintains, and repairs thermal and photovoltaic solar energy systems. A licensee classified in this section shall not undertake or perform building or construction trades, crafts, or skills, except when required to install a thermal or photovoltaic solar energy system.
Like many contractors who perform their work on raised platforms and on roofs of buildings, there is a significant risk for work-related injuries to employees and third-party injuries and property damage. Knowing this, solar contractors should be specifically mindful about their General Liability and Workers’ Compensation coverage. Fairbanks Insurance Brokers offers a specific package of coverages to help solar contractors transfer their risk to highly-rated insurance companies.
Here’s What We Recommend:
General Liability: Since most Solar Contractors perform services in buildings that are occupied at the time of installation or service, there is a substantial risk for bodily injury and property damage to third parties. Your general liability will provide financial protection in the event an action is brought against your company and will also pay for defense costs.
Workers’ Compensation: The state of California’s Licensing Board will not grant your solar business a license to do business unless you provide proof of workers’ compensation coverage. This policy will pay medical expenses and lost wages if an employee is injured on the job, and protect your business from employees suing for medical damages. Solar contractors should keep in mind that there are significant fines and penalties in place in the event your business is discovered working without this coverage.
Surety Bonds: A surety bond is required by the state and by most customers to provide a financial guarantee in the event your business does not complete a project according to the project terms and conditions, and it helps to guarantee that employees, subcontractors, and vendors are paid. : According to California’s Business and Professions Code Section 7071.6, a Contractor’s Bond must be in place before CSLB can issue an active license, reactivate an inactive license, or renew an active license.
Commercial Auto: Generally, all solar contractors will use light and heavy vehicles in the course of doing business. As a commercial business, contractors need to carry minimum limits of liability of at least $1 million and in many cases, up to $5 million. Your commercial auto coverage will also protect your vehicles if they damaged in an accident or other covered peril, or if they are stolen.
Tools & Equipment Coverage: Solar contractors typically use expensive special tools and equipment on the job. Having to replace damaged or stolen tools could create a significant loss for the contractor. With the Fairbanks Insurance tools and equipment program, your business would have financial protection in the event your business is forced to by replacement tools for your business.