Author / pollysci

by pollysci

Insurance For Contractors: Why You Must Have It

General Liability Insurance for Contractors

Contractor’s insurance is of great importance to both the client and the service provider. When working in the workplace, contractors must obtain employee indemnity insurance and at least one type of liability insurance. The insurance contract is also more likely to get the necessary permits and work. To avoid the financial risks associated with employing unprotected contractors, contractors may not destroy the buildings or other properties in the building, but hammer may fall and break the big window. Contractor’s defect may cause injury to pedestrians or residents of the building. When it comes to the construction industry, the overall responsibility compensates for injury and damage to the workplace. However, it does not recover non-compliant labor costs, and the level of coverage varies. Insurance providers like California contractors insurance – californiacontractorsinsurance.org are experienced with construction insurance. Find an agent of broker you can trust to guide you through the many pitfalls of contractors general liability.

Contractor insurance provides adequate protection for every type of specialist or consultant. Protect yourself by the appropriate range that suits your needs. This can be very useful if errors occur within a decade, or if bad luck occurs, such as accidents or illness. Without adequate  insurance, tax tests, and many other treatments are costly. In addition to the need for protection, the client must get confirmation that the work will be done safely.

Initial inspection and verification services for contractors may qualify contractors and ensure compliance with project requirements, guidelines, and standards. Specific procedures will probably not result in injury to employees. When workplace injuries occur, they can cause thousands to millions of dollars in hospital bills. If they do not have insurance, the injured contractors sometimes file lawsuits against their clients. Contractors must get compensation for employees so that they do not charge employees or their clients with the financial costs of injury to employees. Pre-verification services for contractors can check whether the company maintains an appropriate remuneration for employees.

Be Sure to Have Proper Coverage

It’s not enough to ask contractors if they have insurance. It is essential to use the pre-qualification service which proves that the contractor’s reach is authentic and provides sufficient benefits and remains in effect. Contractor inspection services can determine if companies have adequate insurance to meet the project’s requirements. They can also check if the range remains in effect during operation. Contractor’s rehabilitation services provide the operator and contractor with peace of mind and prevent unexpected costs from injuries or accidents.

So, if you’re an adviser, you should look for one of the best insurance companies in Chicago to meet your requirements. A quick Google search will provide a list of trusted providers. You can also search or collect information about a pair of customers to help you make decisions. At this point, if you are a service provider, coverage is a necessary and useful tool available in the professional toolbox. As a service to strengthen the assets and financial resources of a limited liability company, the Chicago Insurance Company is still an essential form of protection, and its importance should never be overlooked.

by pollysci

Shop for Your Contractor Insurance to Save Money

Contractor insurance plays a very important role in safeguarding the business properties, assets, and health of the contractors. If you want to avoid unwanted expenses on your contractor’s medical health, property, and other valuables, then the best possible way is to shop for your Texas contractors general liability insurance to save money.

Have you ever thought that what if any of your contractors get injured during work?

Or if you may damage the client’s belonging?

You are responsible for paying the medical bills of the injured person and repair cost of the property damaged.

Buying insurance is the only way you can secure your workers and other costs.

Here are some common ways to save money on Austin contractor insurance:

1. Shop from the best insurance and the most reliable insurer

Whenever a person decides to purchase insurance, the first question arises is where to get the cheapest insurance? And is that insurance company has a reputation? These are quite important topics which need to be searched before purchasing insurance. You can get the reviews and ratings of several insurance companies online or by other modes. Remember that before finalizing a deal verify all the terms mentioned in the policy so that there may not be any future problems.

2. Ask for discounts

If you desire to shop for your contractor insurance to save money, then do not forget to ask a discount from the insurer. There are several insurance companies providing their clients with discounts. You can ask them about it, and if the discount is not applicable this year, then you may get it next year.

3. Hire experienced agents

An experienced and knowledgeable agent can help you to find the best contractor insurance company at reasonable rates. They can also deduct unwanted expenses on your insurance. So get the top-most agent to save money on contractor insurance.

Following these tips can help you to get the best insurance deal. If you want to secure your properties and safeguard your contractors and your business from unnecessary damage, then shop for your contractor insurance to save money and secure your future. Apart from this, you can also use some safety measures like
• Maintain a regular checking of the equipment, tools, and machinery used by the workers.
• Maintain a fire extinguisher and fill it in every one year to protect your building.
• Make sure that there is no debris on your working regions
• Also, install fencing if needed
Don’t wait, shop for your contractor insurance now to save money!

by pollysci

WHAT YOU NEED TO KNOW ABOUT CSLB LICENSE BONDS

The Contractors State License Board (CSLB) was established in 1929 and is part of the Department of Consumer Affairs. The CSLB is tasked with licensing and regulating contractors in various classifications that constitute the construction industry. The requirements for contractor bonding is set forth by the CSLB and here is a brief overview of license bond basics.

commercial construction

WHAT IS A CSLB LICENSE BOND

A CSLB license bond is a form of security deposit that contractors are required to post to the board. Surety bonds are often used for this purpose although certificates of deposits or cash can be posted. A surety bond refers to a contractual agreement whereby a company promises the state that it will comply with the Contractor’s License Law.

In general, the contractor has a duty not to violate the Contractor License Law, which is a measure for most of the disciplinary action against the license. The bond covers certain violations as per the law. A consumer, employee or supplier can have a claim against it if the contractor violates the bond’s conditions.

AMOUNT OF BOND REQUIRED

The amount of contractor bond insurance is $ 15,000 as of January 1. 2016. It is worth noting that the bond amount is not per job, but the amount available for all projects a contractor undertakes during the life of the bond. Contractors who have been disciplined may need to post a separate bond with CSLB. Some such bonds can vary. Once the bond is depleted, a contractor has to procure a new bond for the license to stay active.

WHO IS PROTECTED BY THE LICENSE BOND

The CSLB license bond is filed to protect consumers or employees from violations of the License Law. Parties that can make claims against a surety bond include:

· A homeowner affected due to License Law violation by the licensee following a contract for home improvement.

· Any individual affected due to a fraud of the licensee in regards to the performance of a construction contract.

· Any employee affected due to the licensee’s failure to pay compensation/wages.

· Any person affected due to the licensee’s failure to avail fringe benefits for qualified employees.

If there are multiple claims exceeding the amount of a bond, the amount posted will be distributed to the claimants proportionally to the claims. However, wage and fringe benefit claims are given top priority.

It is important to note that a claim filed with CSLB is separate from the one filed against the license bond. CSLB will investigate the former while the surety company will investigate the latter.

For additional information regarding bonds you may also contact Public Lab Bonding.

Before You Hire a Contractor Make Sure they are Licensed, Bonded and Insured
by pollysci

Before You Hire a Contractor Make Sure they are Licensed, Bonded and Insured

Before you hire a contractor make sure they are licensed, bonded and insured!

So you need that job done at home, whether it is plumbing or that odd electrical job you still need to get a contractor to handle the job for you. Well, obviously it is important to get the correct contractor for the job but also very important to make sure they do carry a license and insurance is a very important aspect. So in this article, we will be talking about licensing bonding and insurance of contractors.

Let’s have a look at the following:

  • Licensing
  • Bonded contractors
  • Insurance

Licensing

Why should you check if a contractor is licensed? The license is very important because that will tell you that the contractor you hire has undergone the necessary tests for the trades and that they do qualify to do the job you require. Basically, a license means that the contractor has the minimum requirements for the specific trades they are in. So with that being said, it is always best to make sure that the contractor you to hire for the job can show you a license.

Bonded contractors

What is bonded you might ask? Contractors are required to be bonded so they can get a license. This means the contractor needs to buy a surety bond. It serves as insurance to the customer if the contractor fails to do the job properly or fails to pay for permits or other subcontractors for that matter.

Many homeowners don’t realize that a contract is bond can protect them against any damage to the property because of contractor negligence or even stolen property by employees of the contractor.  Here is how they can benefit you.


The home owner is not the only one who benefits from the bond but the contractor as well. Most people don’t hire a contractor who does not offer the protection of a bond. A lot of suppliers or even subcontractors would normally refuse to work with a contractor who does not have a bond in place.

Insurance

Let’s have a look at why a contractor needs to be insured.

Contractors normally need to be able to show proof of insurance to able to get a trade license.

Insurance is normally divided into two types.

  • Liability
  • Workers’ compensation

Liability

This normal coverage property damage and or any injuries caused by the contractor’s work.

Workers’ compensation

This normally gives payment to injured workers, no matter who was at fault in the accident, all ages all Hospital costs that is not covered by the contractor.

So always make sure that the contractor you hire is licensed, bonded and insured.

Picking the Right Contractor Bond for Your Business
by pollysci

Picking the Right Contractor Bond for Your Business

What is a contractor Bond?

Contractor bonds are Licenses that are required and laid down by the state to guarantee that a general contractor will operate his/her business in compliance with the rules and regulations pertaining to their specific obtained contractor license bonds.

Functions of a contractor bond.

A contractor bonds exist to protect the public from unwanted practices and unlawful behavior by a contractor. These contractor bonds acts as rules and therefore for any person interested in the success of their businesses, it is very good that you pick the right contractor bond for your businesses to be able to operate efficiently and effectively to provide good services to the potential clients and therefore if a contractor’s customer or employees are financially harmed as a result of any violation, then a bond payout may occur.

However, before a surety makes any payment on a bond, they will investigate all claims of the clients and if it is valid, they will make the payout. However if there is no payout to the clients by the surety, a contractor is responsible for repaying the surety the amount of the bond claimed and all the other legal expenses. This makes it different from an insurance company.

Advantages of picking the right contractor bond for your business

  • Provides assurance to the business that the contract bond will fulfill its contract adequately to the level of satisfaction required by the business planners.
  • Protects against any financial loss.
  • This encourages pursuit of business goals. This is because surety bonds guarantee the business owner that the contractor will perform the work for the quoted price.
  • The business will be more attractive to potential suppliers because the suppliers are ensured they will be paid regardless of financial difficulty at the contractors end.
  • Helps to avoid any dispute in contracts as it assures the business owner the work will be completed as per the contract.
  • The business will be assured by the contract bond that it has the financial capacity to withstand the risks involved in the construction of the business.

Disadvantages of contractor bonds for business

  • Incase the claims made by the business are found invalid, they will be required to pay a price higher than the bond.

In conclusion, it is very important that a business should pick a right contractor bond that they can easily operate with and to avoid any fears of the business failing.