2. Is builder’s risk insurance required? Builder's risk insurance is usually not mandated by law; however, local municipalities may require a homeowner or general contractor to purchase it before the start of the project. 3. How is builder’s risk insurance different from homeowners insurance?
Lower overhead: While an independent contractor’s hourly rates often far exceed what you’d pay an employee, the contractor is responsible for their overhead costs, including equipment, supplies and workspace. You are not responsible for providing training, health insurance, benefits, vacation time...
Under theFederal Acquisition Regulation(FAR), businesses working on government projects are required to carry professional liability insurance to protect them from “the perils to which the contractor is exposed.” These businesses include: Construction firms Professional services providers...
Home insurance generally covers damage due to fire, wind or snow, but standard policies won’t cover floods or earthquakes. It also covers your liability if you hurt someone else or damage their property. Table of contents What does homeowners insurance cover? What homeowners insurance won't cov...
For example, in California, the Contractor State Licensing Board (CSLB) has authority to issue a Stop Order where there is no workers’ compensation insurance coverage for employees. The municipal or city government may govern these orders as well. Contractors should check their construction contra...
With that said, a general contractor’s work doesn’t end with overseeing the project. A licensed general contractor usually takes on other responsibilities such as securing worker’s compensation and liability insurance for everyone in the project. ...
Here's a sample of the risk that vendors can pose: Legal or compliance breaches, especially if you work in government, financial services or a military contractor Breach of the Health Insurance Portability and Accountability Act (HIPAA) that require protected health information (PHI) to be secured...
What’s the difference between a COI and an insurance policy? A COI is used to show another party that you have contractor’s insurance in place. A COI can also be used to show a GC or owner that you’ve named them by endorsement as an additional insured on your contractor’s liabilit...
Contractor’s License Bond Performance Bond Payment Bond Bid Bond Maintenance Bond Surety Bond Benefits of Bonding Insurance Limitations of Bonding Insurance Conclusion Introduction When it comes to protecting your financial interests and mitigating risk, bonding insurance is a powerful tool that can provid...
Oral or written contracts: If a contractor sues you for not honoring oral or written contract terms, your umbrella policy likely won’t cover your legal expenses. Keep in mind that all policies are different. To make sure you understand what your umbrella insurance does and doesn’t cover, ...