insurance

Importance Of Licensing, Bonding, And Insurance For Contractors and Homeowners

If you sign a contract with a contractor who is not licensed, you are not going to break a law, but you are going to take a big risk. At times, shoddy workmanship may cause a good deal of loss. Therefore, many states in the USA spend a significant amount of resources in order to catch and punish unlicensed contractors. Read on to find out more.

There are entities offering counsel to licensed as well as unlicensed contractors that face fines and legal charges in relation to license violations. Moreover, they point out why the DBPR and CILB consider surety bonds, licensing and insurance a very important aspect of the industry of construction on the whole.

LICENSING

The contractor's licenses are under the regulation of the DBPR and CILB in order to make sure that each individual that gets certificate meets the set requirements, such as financial responsibility, experience in the field, clean criminal record, and insurance coverage based on the type of license.

Aside from this, it's important to keep in mind that licensed pros can be held responsible if they don't complete the work or complaints have been registered against them. Therefore, the pros try their level best to complete the work in time in order to avoid permanent license revocation. So, for each professional, it's very important to meet the deadlines.

SURETY BONDS

In each construction contract, it's mentioned that the project will be completed within the given time. If the deadline is not met, problems can occur for the contractor. This is where a surety bond comes to rescue the homeowners. In unforeseen circumstances, a bonded status offers protection to business owners, but it's not required if you are based in Florida. However, it does matter if the credit score of the contractor is under 660. …

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Contractors Insurance Protects Your Business

General contractors call the shots in most construction projects, taking the lead in all important operations including coordinating subcontractors, supervising job sites, and many other responsibilities to ensure projects stay on time and within budget. The many risks involved with leading these projects makes contractors insurance essential to protect the business against losses that may result from a lawsuit.

One of the common misconceptions of contractors insurance is that it only applies to general contractors. But subcontractors such as carpenters, roofers, landscapers, masons, electricians, plumbers, and other trades are all liable as well. Since they are often involved in complex business relationships, contractors need to be able to rely on an insurance company that has their best interests in mind.

Most contractors understand the common risks of construction projects, such as injury to subcontractors, not being paid on time, not adhering to timeframe agreements, and other risks that should be considered when drafting the general construction agreement. A contractor's insurance policy may include provisions for issues such as negligence and workplace safety.

Speaking of contracts, all contractors should carefully read every contract and even ask their attorney to review the agreement before they sign on the dotted line. Depending on the size and length of the project, certain clauses can hold hidden fees and liabilities for which the contractor is unclear. This oversight can ultimately result in a situation that isn't covered by contractors insurance and therefore becomes out-of-pocket costs that can seriously damage a business.

Whether you're a contractor or subcontractor researching business insurance, coverage typically involves general liability, commercial automobiles, workers compensation, builder's risk, tools and equipment, bonds commercial umbrella, and employee benefits.

Remember to keep the following risks in mind when you speak with your contractors insurance company:

• Defective products: As a general contractor, you're responsible …

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What You Need to Know About Contractors Insurance

It is a necessity for any business undergoing construction or renovation to purchase a contractors insurance in order to safeguard their financial stability, as well as their workers' wellbeing. It's not in favor of the business' interest to leave it susceptible to financial drains, in case of management, materials, and manpower problems. There are certainly a lot of risk factors present in a construction site, and all of these could very well hurt a business, if not properly dealt with. Sure, the contractor may be held liable for some of the issues, but most of the losses will be incurred by the property owner. Besides, the majority of the states in the US demand that they are secured, before a project license is granted.

Contractors insurance basically covers losses due to lightning, vandalism, fire, lawsuits, injury, and other property damages that are not caused by professional errors or intentional acts. But there are certain policies that do not indemnify against earthquakes, acts of violence, and flooding. The safest plan that you can apply for is a general liability contractor insurance, since it typically takes care of all of the basic concerns, when it comes to this type of activity. Usually, it is the building owner's responsibility to acquire a builder's risk insurance, and ascertain its scope. But, the general contractor can also be tasked to buy it, as stipulated in the contract. It is important to note that this type of property insurance is only valid during the construction period, and is terminated upon the project's completion.

To ensure that you are getting the best policy, it is advisable that you shop around for options, before you settle with a provider. Submit your contracts for quotes if you are a contractor, and negotiate the rate of your policy if you …

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General Liability Insurance for Contractors Info: How Can You Choose a Good Provider?

If you're an independent contractor, you might not think you need any kind of liability insurance. However, just like any small business owner, it's a good idea to have at least base insurance. There will always be people out there who will try to sue anyone and everyone for any reason. No matter what your line of work is, you never know if you might be held liable for something in some way. Don't take any risks – invest in general liability insurance for contractors.

Even if your job involves primarily sitting in front of a computer all day, you are not entirely protected by potential lawsuits of some sorts. Independent contractors have pretty much the same legal obligations and liability exposures as large companies and firms. Depending on your industry, you could be held liable for anything from bodily injuries to advertising libel or copyright infringement.

There are some industries in which general liability insurance is required by law for independent contractors. What if your business starts to grow and you have to start hiring employees or contracting work out to others yourself? You'll need protection for them as well.

What to Look for in a General Liability Insurance for Contractors

You don't want to purchase general liability insurance for contractors from any company. Here are a few things to look for in a business insurance provider:

• Simple monthly payments are always good – especially if you have cash flow trouble. Choose a provider that has flexible payment plans to keep things as smooth and simple as possible.

• Make sure that the coverage includes all of the essentials: bodily injury, libel / slander / defamation, and property damage. The ideal general liability insurance plan should include these at the very least.

• Worldwide coverage is important, as …

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