You are negotiating a large new contract, and the owner requests that you provide them a certificate of insurance naming them as additional insured.

You might wonder, can I get that and how much will it cost me?

You can relax; it is a simple endorsement that you can add to your general liability insurance policy. This is a very common endorsement, and the exact language of the endorsement is as follows:

This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for “bodily injury”, “property damage” or “personal and advertising injury” caused, in whole or in part, by:1. Your acts or omissions; 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to “bodily injury” or “property damage” occurring after:1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed;or 2.That portion of “your work” out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.

The first reaction after reading that is, what does this mean to me?

After you take a breath, it is pretty simple to understand. In order to be allowed on a construction site or before starting work, contractors must show that they have insurance.

The people you will be working with also will want their name on the certificate of insurance naming them as additional insureds on your commercial general liability (CGL) policy.

By requiring this, the parties hiring the contractors have the expectation that the additional insured endorsement will defend them in case they get sued for something relating to your work. Whether or not they will be covered depends on the additional insured endorsement.

The most common additional insured endorsement for contractors is the CG 20 10

The CG 20 10 covers the additional insured with respect to liability caused by your ongoing operations. “Ongoing operations” does not include “completed operations.”

Therefore, the current form CG 20 10 does not include completed operations coverage for the additional insured. If that coverage is required, you will also need the CG 20 37 endorsement.

Ongoing Operations Occurrence, Example:

Say after 5 weeks after you finish the roof, the chimney falls over on the neighbor’s greenhouse. This is property damage out of your completed operations since to job has been completed. Once again, the neighbor sues the property owner.

If the property owner was named as an additional insured using the current CG 20 10, the property owner would not have covered for the completed operations exposure as this is not ongoing operations, as your completed work caused the damage.

The property owner would not have coverage for the completed operations exposure under the contractor’s CGL policy.

The current form CG 20 10 after 1985 does not provide coverage to the additional insured for completed operations. It only provides coverage for ongoing operations, and this was a completed operations exposure.

If they also wanted coverage for completed operations, they would need a CG 20 37 endorsement.

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Blanket Additional Insured Endorsement

The Blanket additional insured endorsement is an endorsement that allows your agent to issue certificates of insurance to add as additional insureds, those individuals or entities for whom the named insured is performing operations and with whom the named insured has agreed in writing to name as an additional insured.

Having the blanket endorsement allows insurance agencies to send out these endorsements without requesting permission from the insurance carrier’s underwriters, which sometimes can take days.

This makes the request for a certificate of insurance quicker to process, therefore allowing you to start work sooner.

A requirement of getting a blanket additional insured is the written contract requirement saying you must name the owner as an additional insured.

A blanket additional insured endorsement can be easily added to your General Liability Insurance. However, you need to be aware of this when comparing quotes. You need to ensure that blanket additional insureds are included when comparing quotes to have an equal comparison.

By having blanket additional insured, you can request to have all your clients or customer listed as additional insured on your policy with no additional charge.

The cost to add additional insured varies by the insurance company but can be as little as $250.

In some policies, the endorsement is included at no extra cost. Regardless of cost, it is typically far cheaper to pay for the blanket additional insured as opposed to each required party.

You need to make sure any quote you are given includes Blanket Additional endorsement. Especially on larger projects, the number of entities you might need to list as additional insured can be significant.

You can rest assured that the agents at ContractorsLiability.Com can get you the right policy you need.

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Every business owner knows that the Country is in the grip of liability lawsuits mania. The number of lawsuits against small businesses has skyrocketed in the last ten years. No one party is willing to take responsibility for their own actions.

Any accident, mishap, libel or product liability is always someone else’s fault. Attorneys are bombarding the airwaves drumming up cases for their firms. You have lost control and are the responsible party that the court of law will determine being responsible for the liabilities for injury and harm caused to a plaintiff As a result, the lawsuits are coming fast and furious. If you operate a small business it is only a matter of time before the sheriff is knocking on your door ready to seize all your property.

This is why you need the protection of a Business General Liability Insurance policy.

You should also have an Affordable Commercial Auto Insurance Policy. This will protect you from any legal liabilities you may be held liable for by any court decision after the legal process runs its course. The liability exposures that certain types of businesses that use vehicles for income producing services is quite broad. If an employee in the course of their employment is party to an accident and causes injury or bodily injury to a plaintiff or their property, the responsibility and the legal liability for the injuries will fall on the employer.

One of the most overlooked benefits of a Low cost Business General Liability Insurance Policy is that it includes coverage for legal fees in the event of a covered claim. This is included with your coverage for any judgements, awards or settlements for any claims that the courts may find your business has legal liability for.

If you do not have insurance these fees along with any judgments will be paid by you. For most small businesses this would more than likely force them to close their doors for good. It is important to realize that no matter how careful you are, accidents will happen. Also, a meritless claim still has to be defended and legal fees paid.

Business General Liability Insurance Policy Limits

With all Business General Liability Insurance Policies you have Policy limits. These are the maximum amount the insurance company will pay on your behalf in the event of a claim. They are usually stated as two numbers such as $1 Million/$2 Million.

What this means is that the company will pay up to $1 Million for a single claim and up to $2 Million if you have multiple claims. (On a side note, run away from any agent that attempts to sell you a lower amount.

Pro Tip

The difference in cost of a $250,000 and $1 Million policy is generally less than $50 per year.

Legal Costs Inside The Policy Limits VS Outside The Policy Limits

The insurance companies have taken notice of this trend. One of the things more and more policies contain is that costs of defense are included in Inside The Policy Limits. What does this mean you may ask yourself? Well here is a simple explanation.

When your policy has legal costs Inside the Policy Limits wording this means that any costs generated in defending the claim against you will reduce the amount available to pay any judgment, if one is awarded.

Here is an example. A customer files a lawsuit against you for damages caused by negligence or libel. The insurance company spends $400,000 in legal costs defending you. You have a $1 million policy limit. You will only have $600,000 to pay any judgment because of the Inside the Policy Limits wording. The insurance company is only responsible for $1 Million and $400,000 was legal costs.

When your policy has legal costs Outside the Policy Limits wording this means that any costs generated in defending the claim will NOT reduce the amount available to pay any judgment if one is awarded. Here is the same example as above but in this case, the policy contains Outside the Policy Limits wording.

A customer files a lawsuit against your business. They spend $400,000 in legal costs defending you. You have a $1 million policy limit. You will still have $1 Million to pay any judgment because of the Outside the Policy Limits wording. The insurance company is still responsible for $1 Million for any judgment and $400,000 legal costs.

This may seem like a trivial matter, but in the real world, this can mean life and death for your business. It does not take much in this day and age for legal bills to reach the stratosphere. You need to be aware that if there is a judgment against you that exceeds the policy limits of your insurance policy you will be the party left holding the bag for the difference. If your policy has Inside the Policy Limits wording the greater the chance of this happening.

Is There Anything Else That Will Give Me Greater Coverage Limits?

There are a couple of ways you can protect yourself before you become a defendant in a negligence or tort court case. These will protect officers, owners, and employees from lawsuits that may prove their negligent actions were the proximate cause of the parties injury.

The relevant factors in such cases were damages awarded to the suing party prove to be greater than the policy limits, and the liable party or parties will be liable for the harm caused. This is generally an amount of money given to a plaintiff as a breach of duty was found by the law courts for a failure to act or a specific type negligent action.

The following tips and strategies will help you meet your legal liabilities in the event of a catastrophic event that seems to be happening more and more in the business world where the court would award damages to a plaintiff for an injury a defendant was found to be liable for.

Increase your underlying Policy Limits

If you want to increase your protection for legal liability the easiest way is to increase your liability insurance. Most companies for example increase coverage to at least 2 Million dollars up to 5 Million dollars per occurrence.

Excess Insurance

This type of policy adds additional coverage limits only on top of an existing liability insurance policy. It increases the liability coverage of just that policy. So for example let us say you have a general liability policy with a $1 Million underlying policy with $3 million excess coverage and a commercial auto insurance policy with a $1 Million policy for bodily injury. An employee or employees in the course of their employment is negligent and causes a vehicle accident where the legal liability exceeds the $1 million dollar coverage, the employer would be the party legally liable for paying the person for their injury.

Umbrella Insurance

This type of Excess insurance lays over the top of all the policies of the insured.That is why they are called Umbrella policies they cover everything like an umbrella. They are issued in amounts of $1 million increments in most cases. Using the same example as above in the Excess Insurance section.

So for example let us say you have a general liability policy with a $1 Million underlying policy with and instead of $3 million excess coverage, they have a $3 million Umbrella and a commercial auto insurance policy with a $1 Million policy for bodily injury. An employee in the course of their employment is negligent and causes a vehicle accident where the legal liability exceeds the $1 million dollar coverage, the employer and any other officers or covered parties would have coverage for any court verdicts up to $4 million.

Pro Tip

It is in your control to determine how much protection you need. In some situations the contract or sub contract you have determines the amount of coverage you need. It is important to read the contract to see the requirements before you take the job.

Depending on the contract requirements it may not be economically viable to meet the terms of the contract. As an owner you do not want to be liable for the violation of a contract term by failure to meet your contractual duty.

A simple example of this would be a person who signs a contract for a $12,000 job with a prime contractor. The contractor requires a $5 Million Umbrella policy for liability. This policy may cost over $5,000 for a year. Unless the contractor had more contracts subject to this liability requirement it would probably not make sense to enter into this contract.

However, having access to higher policy limits for liability should make your services more attractive to a property owner who has the responsibility to hire a party that has access to their property in the event of injuries. So in the long run you may be able to by having additional insurance.

Have Any Other Insurance Questions?

We are happy to answer any questions you may have contractorsLiability.com has the capability to provide quotes for the hard-to-place risks and get you insured quickly and conveniently. We have the experience to analyze and recommend the appropriate affordable Business General Liability Insurance Coverage. Call now to speak with a knowledgeable agent.

Our experts can review your needs and get you the proper coverage your business deserves. They will make sure you have the coverage you need at the best price for you. Best of all, you can get a free, no-obligation quote in minutes.

So act now If you have any questions about this or any other insurance needs feel free to contact the knowledgeable agents at ContractorsLiability.com at 866-321-5711 or go to our website for a. We offer 5 Star customer service and can often get you insured in under an hour.

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These licensing requirements are the same for all types of contractors. That being said they usually break down commercial and residential work into different categories.

There are a few States such as Illinois, California and Arizona that have specific requirements for Roofing contractors.

In most instances States will require that you show past experience in the trade, pass an exam, obtain insurance and in some cases provide a bond before you are granted a license.

Further complicating things a number of municipal entities may require some sort of permit or registration before you can start work. These requirements are generally straightforward. They usually require an application completed, a copy of your Roofer’s General Liability Insurance policy, any State license and some instances a bond.

We’ve put together a comprehensive list of roofing license requirements, across all 50 states. In many states you will need to have the proper roofing insurance in order to get a license. You may also need to show proof that you have experience or take an exam.

It is important that you do a simple google search of the City you plan doing business in to also see if they have any specific requirements. The sheer diversity of cities and differing requirements make it impractical to list them in a single place.

A to Z

Alabama

If you are a residential roofer who contracts directly with a home owner to perform residential roofing, when the total cost of the undertaking exceeds $2,500, you are required to hold a residential roofers license.

The Application and other requirements can be found HERE.

• Alabama Roofing and Sheet Metal Contractor license is required for work over $50,000.
• You need to pass a trade exam, as well as a business and law exam.
• You must show proof of completion of three projects within the past three years.

To apply, contact the state of Alabama at 1-334-272-5030. The application fee is $300.

Alaska

Roofing is considered a specialty contractor trade. As a result you need to complete the specialty contractor registration.A roofing contractor performs the following services on all types of roofs using all types of roofing material:

• Installation of roof sheathing.
• Installation or application of roof weatherproofing and insulation.
• Repair of structural damage of roof support system, but not construction or installation of a new roof support system.
• Extension of roof penetrations, vents, and drains on an existing structure, except electrical penetrations.
• Installation of skylights

For this you need to complete an application, provide proof of insurance and a $10,000 Bond. More information can be found HERE.

General Contractors

General Contractors may perform new home construction, commercial work, and residential remodel work. General contractors that oversee new home construction or perform residential work greater than 25% of the value of a structure being altered must obtain a Residential Contractor license and/or a Residential Contractor Endorsement.

Residential Contractors

Residential Contractors are contractors who have a Residential Contractor Endorsement or have assigned to them an individual(s) who has a residential contractor endorsement. Residential Contractors may undertake construction of a privately owned residential structure of one to four units and residential work greater than 25% the value of the structure being altered.

Arizona

In Arizona according to the Arizona Register of Contractors (ROC). Roofing is a specialty classification with specific licenses for residential or commercial work.

You will need to:

• Pass a roofers examination
• Provide proof of insurance
• Workers compensation insurance
• A bond

These requirements can be found HERE.

Arkansas

To perform Residential Roofing:

• You must be REGISTERED as a residential roofer instead of having a Home Improvement Roofing License
• The Registration is ONLY for Roofers. If you perform other types of Residential work in addition to Roofing, you will need to maintain your Home Improvement License.

The application can be found HERE.

A Residential Roofer Registration is needed to perform “Roofing, Roof Decks, Roofing Sheet Metal” projects more than $2,000, including but not limited to, labor and material. A $15,000 bond is required with the application.

A commercial license is needed if a contractor performs work of $50,000 or more, including, but not limited to, labor and materials, on a commercial project. Any project that is not a single-family residence is a commercial project.

California

According to the California Code of Regulations if you do work that costs more than $500, you need a C-39 – Roofing Contractor license. A roofing contractor installs products and repairs surfaces that seal, waterproof and weatherproof structures.

This work is performed to prevent water or its derivatives, compounds or solids from penetrating such protection and gaining access to material or space beyond. In the course of this work, the contractor examines and/or prepares surfaces and uses the following material: asphaltum, pitch, tar, felt, glass fabric, urethane foam, metal roofing systems, flax, shakes, shingles, roof tile, slate or any other roofing, waterproofing, weatherproofing or membrane material(s) or a combination thereof.

To get a roofing license in California:

• You must pass an exam but before you apply
• You will need to show experience in the past ten years or a comparable license from another state in the classification for which you are applying for a license
• You will also need a $15,000 surety bond
• General Liability insurance and workers compensation insurance if you have employees.

The application can be found HERE.

It may be in your best interest to form a corporation rather than an LLC as the State requires a $100,000 bond from LLC’s for workers compensation. There is no requirement for corporations to file this bond. You should discuss this with your business advisors.

Colorado

There is no specific Roofing contractor license. It is treated as a general contractor in Colorado. As such you are not required to have a state license, you will be required to have a business license. Some municipalities may have their own requirements and you need to check with them before you start any work.

Connecticut

Roofing contractors are not required to have a state license in Connecticut. Under the Connecticut Home Improvement Act, an individual and/or business is required to register with the Department of Consumer Protection if they are contracting with a consumer to perform work on residential property. Home Improvement is any permanent change to residential property, including roofs.

The application can be found HERE.

Delaware

If you are a roofing contractor you must register with, and get a business license from the Delaware Division of Revenue.

The Forms can be found HERE.

Delaware law, with limited exceptions, requires all employers to secure workers’ compensation insurance to cover all their full-time, part-time, seasonal or occasional employees prior to hiring and working in the State.

Florida

There are two different classifications: Registered or Certified.

If you obtain a local, county or city contracting license, you must apply for initial state registration. You may only practice contracting in that county or city, along with any adjoining locales that will accept your registration. If you complete the Florida contractor’s examination and apply for initial certification, your licensure will allow you to work throughout the state.

You may access both licensure applications and the Florida contractor’s examination application HERE.

Applicants will need to:

• Provide proof of financial stability and responsibility by submitting a personal credit report and/or financial statements.
• Attest that they have obtained public liability and property damage insurance in the amounts determined by Board rule.
• Obtain workers compensation insurance or obtain an exemption from workers compensation insurance within 30 days of issuance of their license.

Georgia

There is no State Roofing license to work in Georgia. Some municipalities have local licensing requirements which you will need to check before you begin work.

Hawaii

To be a licensed roofer you need to:

• Obtain a C-42 Roofing Contractor License issued by the Department of Commerce and Consumer Affairs Professional and Vocational Licensing
• You will need to pass a roofing exam, as well as a business and law exam.
• To be eligible to take the exam, you will need to show previous experience.
• You also must maintain continuous general liability insurance coverage throughout licensure and keep on file in the Board’s office evidence of such coverage.

The requirements can be found HERE.

Idaho

Idaho’s roofing license requirements do not require roofers to hold a state license. If you work on a construction job with a dollar amount exceeding $2000.00 you must register with the State.

The registration information can be found HERE.

You will need general liability insurance including products and completed operations coverage in the name of the entity or person applying for registration with a minimum coverage in the amount of $300,000.00.

Illinois

Roofing contractors in Illinois require a state Illinois roofing license issued by the Department of Professional Regulation.

There are two types of licenses. You must apply for the license of the type of work you plan to do.

A limited license is for contractors whose roofing business is limited to roofing residential properties of eight units or less.

An unlimited license is for contractors who work with residential, commercial, and industrial properties.

The application can be found HERE.

To qualify to apply, you must:

• Pass the state exam
• You also need to have General liability insurance
• A bond. The bond for the limited license is in the amount of $10,000. The unlimited bond is for $25,000
• The licenses all run for a period of 2 years expiring on 12/31 of odd numbered years

If you are going to form an LLC for your roofing business, your are required to form a PLLC, the cost is the same but the state requires you to form a Professional Limited Liability Company (PLLC) if you want to get the entity licensed.

Indiana

There is no State Roofing license to work in Indiana. Some municipalities have local licensing requirements which you will need to check before you begin work. Some Counties in Indiana also require the original bond be recorded at the County Recorder’s Office.

Iowa

All construction contractors who earn more than $2,000 per year are required to be registered with the Iowa Division of Labor if they work in the state. There is no exam, but you must show proof of unemployment insurance.

If you are an out of state roofer you will need to purchase a $25,000 bond to guarantee that any taxes owed to the state are paid. This bond is expensive even if your credit is good.

Kansas

The Kansas Roofing Registration Act was enacted on April 22, 2013. Under the provisions of this law, on and after July 1, 2013, every “roofing contractor” must obtain a roofing contractor registration certificate from the Kansas Attorney General in order to legally provide commercial or residential roofing services for a fee in Kansas.

While there is no state license for roofing contractors in Kansas, you must:

• Hold a roofing contractor registration certificate issued by the Kansas Attorney General in order to do work on either residential or commercial projects in the state.
• Kansas and Kansas City roofing contractors must show proof of liability business insurance in Kansas and workers’ compensation insurance according to the state roofing license requirements.

The application can be found HERE.

Kentucky

There is no State Roofing license to work in Kentucky. Some municipalities have local licensing requirements which you will need to check before you begin work.

Louisiana

Roofing contractors in Louisiana require:

• A state license for any commercial construction work with a value of $50,000 or more including labor and materials
• Home Improvement projects with a value exceeding $7,500 but not in excess of $75,000 including labor and materials require a home improvement registration
• If the residential project is more than $75,000 you need the residential license
• You need to pass a trade exam, as well as a business and law exam
• Show proof of general liability and workers’ compensation insurance.

The Louisiana State Licensing Board for Contractors issues commercial and residential licenses and home improvement registration

The application can be found HERE.

Maine

There is no State Roofing license to work in Maine. Some municipalities have local licensing requirements which you will need to check before you begin work.

Maryland

Roofing contractors do not require a state license to work in Maryland, only If you are doing Home Improvement work you will need a state license and is issued by the Maryland Home Improvement Commission.

To apply for the license you need:

• To show two years of work experience and pass the exam.
• You also need to show proof of insurance to comply with state roofing license requirements.
• There is also a financial solvency requirement. Any applicant who does not meet the Commission’s financial solvency guidelines may obtain an indemnitor or purchase a surety bond.

Massachusetts

Roofing contractors in Massachusetts must be licensed by the State Board of Building Regulations and Standards. This is the Construction Supervisor License. If you work on existing structures, you will also need a state registration.

All contractors, partnerships, and corporations that solicit, bid on, or perform residential contracting as a contractor or subcontractor on an existing one to four unit owner occupied residential property in Massachusetts must be registered as a Home Improvement Contractor (HIC).

An HIC Registration is different from a Construction Supervisor License (CSL) and they are not interchangeable. You can obtain a CSL from the Office of Public Safety and Inspections.

More information can be found HERE.

Michigan

RESIDENTIAL BUILDERS AND MAINTENANCE & ALTERATION CONTRACTORS require a license if they are engaged in the construction of a residential structure or combination residential and commercial structure, or persons who undertake the repair, alteration, addition, subtraction or improvement of a residential structure or combination residential and commercial structure for compensation other than wages for personal labor.

Before you apply, you need to complete 60 hours of education and then pass an exam.

More information can be found HERE.

Minnesota

Licenses are required for all residential building contractors and remodelers in Minnesota who contract with a homeowner to construct or improve dwellings by offering more than one special skill.

The application and more information can be found HERE.

To get a license:

• You need to pass the residential roofer trade exam
• You also need to show proof of insurance
• You must post a $15,000 surety bond.

Mississippi

Commercial and residential contractors and roofers are required to be licensed by the Mississippi State Board of Contractors.

All contractors performing new residential or commercial construction over $50,000, residential remodeling or additions over $10,000, or residential roofing over $10,000, are required to have a license issued by MSBOC.

All applicants are required to:

• Take a Law and Business Management exam.
• Depending upon the classification of licensure you are applying for, a trade exam may also be required.

Missouri

There is no State Roofing license to work in Missouri. Some municipalities have local licensing requirements which you will need to check before you begin work.

Montana

Roofing contractors are not required to hold a state license in Montana. All construction contractors with employees must register. A construction contractor is defined, simply, as anyone who adds to or takes away from a structure, project, development, or improvement attached to real estate.

If you have no employees, you can register, but are not required to.

Nebraska

There is no State Roofing license to work in Nebraska. Some municipalities have local licensing requirements which you will need to check before you begin work.

Roofing contractors, in Nebraska who perform construction or repair work, are required to register with the Nebraska Department of Labor.

The registration can be found HERE.

Nevada

All businesses or individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in Nevada must be licensed by the Nevada State Contractors Board. Contractors, including subcontractors and specialty contractors must be licensed before submitting bids.

The contractor or other person who will act as the qualifying individual must have had, within the ten years immediately before the filing of the application, at least four full years of experience at a journeyman level, or as a foreman, supervisor, or contractor in the classification for which you are applying.

More information can be found HERE.

New Hampshire

There is no State Roofing license to work in New Hampshire. Some municipalities have local licensing requirements which you will need to check before you begin work

New Jersey

The Contractor’s Registration Act requires that all roofers that do residential work must register as a home improvement contractor with the N.J. Division of Consumer Affairs and display their registration number listed,NJHIC#, at the following places:

• Within their places of business (the original registration certificate)
• On all advertisements
• On business documents, contracts and correspondence with consumers
• On all commercial vehicles.

You do not require a state license to work as a roofing contractor in New Jersey; however, you are required to be registered if you do residential work.

The application can be found HERE.

New Mexico

Roofing contractors in New Mexico are treated as Construction Contractors. As such you require a state license to work.

You will need:

• Two years of experience to be approved to take the exam and you must pass the trade exam
• The license is issued by the Construction Industries Division, State of New Mexico Regulation and Licensing Department

New York

There is no State Roofing license to work in New York. Some municipalities have local licensing requirements which you will need to check before you begin work.

North Carolina

To obtain a license you must complete the Application for License to Practice General Contracting in the State of North Carolina which is available on the Boards website at www.nclbgc.org The application must fully comply with all requirements established by the Board’s statutes and rules. Further the basic requirements for licensing include:

• Completing the application
• Be at least 18 years of age
• Possess good moral character
• Meet the minimum financial requirement based on the limitation of license you are applying for
• Successfully completing an examination based on the desired classification of license

There are 3 different limitations.The limitation determines the total dollar size of the projects that the licensee can undertake.

A limited license allows contractors to undertake individual projects up to $500,000 each.

The intermediate license allows contractors to undertake individual projects up to $1,000,000 each.

The unlimited license has no dollar limit on the size of the projects that can be undertaken

North Dakota

Roofing contractors require a state license in North Dakota for any jobs worth $4,000 or more. There are four classes of licenses issued by the Secretary of State of North Dakota, depending on the size of the jobs you plan to take on.

There is no exam requirement, but you will need to show that you don’t owe any taxes and show proof of workers’ compensation insurance and liability insurance.

Ohio

There is no State Roofing license to work in Ohio. A vast majority of municipalities in Ohio have local licensing requirements which you will need to check before you begin work.

These generally consist of:

• An application/registration form
• Proof of general liability insurance
• A bond ranging from $5,000 to $25,000
• The majority of these registrations expire 12/31.

Oklahoma

There is no license requirement, however, you must register.

Residential

An Active Roofing Contractor performing only residential roofing work must provide a certificate of insurance evidencing a minimum of $500,000.00 business general liability insurance in the form of a Certificate of General Liability. The individual registration holder’s name must be on the certificate of insurance. The certificate holder is the Construction Industries Board.

Commercial

An Active Roofing Contractor performing any commercial roofing work must provide a certificate of insurance evidencing a minimum of $1,000,000.00 commercial general liability insurance in the form of a Certificate of General Liability. The individual registration and endorsement holder’s name must be on the certificate of insurance. The certificate holder is the Construction Industries Board.

The registration application can be found HERE.

Oregon

Roofing contractors in Oregon need a state license to work.

You’ll need to:

• Complete pre-license training and pass a test before you will be issued with a license from the Construction Contractors Board
• Show proof of general liability insurance and workers’ compensation insurance.
• A bond is also required depending on the type and size of work you do.
• There are two types of bonds as well, one for commercial and another for residential work. If you perform residential and commercial work you will need two bonds.

Pennsylvania

There is no State Roofing license to work in Pennsylvania. Some municipalities have local licensing requirements which you will need to check before you begin work.

Rhode Island

Commercial roofing contractors in Rhode Island require a state license to work. Commercial Roofing License is needed for a “Roofing contractor”. This means any person or entity engaged in the state of Rhode Island in the business of commercial or industrial roofing, or any combination of these. Commercial or industrial structures or buildings shall not include any residential structures consisting of four (4) dwelling units or less.

“Roofing” means and includes any and all construction, renovation, or other work performed on or about the roof, as the term is commonly used, of any nonresidential structure or similar building and shall specifically include sealing, water proofing, weatherproofing, related sheet-metal work, and similar work.

Requirements for those seeking a commercial roofing license for the first time:

• Documentation of completion of PSI exam
• 2,000,000 Certificate of Liability Insurance, indicating CRLB as the certificate holder.
• Certificate of Worker’s Compensation Insurance, indicating CRLB as the certificate holder, must be submitted by applicants with employees
• Business ID# and date of incorporation for Corporations and Limited Liability Companies.
• $400 initial license fee for 2 years.

South Carolina

Roofing contractors fall under the category of Residential Specialty Contractor. They do not require a state license to work in South Carolina. You must be registered with the South Carolina Department of Labor, Licensing and Regulation.. To become registered, you must submit references and a surety bond if your work will be worth more than $5,000

South Dakota

There is no State Roofing license to work in South Dakota. Some municipalities have local licensing requirements which you will need to check before you begin work

Tennessee

A Tennessee contractor’s license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor), as a prime (general) contractor; and also subcontractors performing roofing.

A Home Improvement license is required for remodeling projects in several counties, when the cost is $3,000 to $24,999. Consumers prefer to hire licensed professionals, especially when it comes to home remodeling. If you want to be known as a state licensed, insured and bonded contractor, the Home Improvement license is a good start. The Home Improvement License also requires a $10,000

Counties who have adopted the Home Improvement law pursuant T.C.A. 62-6-516 (formerly 62-37-126), are currently: Bradley, Davidson, Haywood, Hamilton, Knox, Marion, Robertson, Rutherford, and Shelby; and required for projects over $3,000 to less than $25,000.

Note: A license is required regardless of whether a permit is needed.

You must:

• Pass a trade exam, as well as a business and law exam
• You must also provide a financial statement and show proof of general liability and workers’ compensation insurance.

Texas

There is no State Roofing license to work in Texas. Some municipalities have local licensing requirements which you will need to check before you begin work.

The Roofing Contractors Association of Texas offers a private licensing service. This is purely voluntarily and not required to do roofing in Texas.

More information can be found HERE and for insurance requirements, visit our Texas contractors insurance page.

Utah

You must:

• Already have completed a pre license course from Associated Builders and Contractors Inc (ABC), Utah Home Builders Association (UHBA), or Associated General Contractors of Utah (AGC).
• Specialty contractors require a 25-hour pre-licensure course.
• You must have obtained a general liability insurance certificate with minimum required coverage of $100,000 for each incident and $300,000 in total.
• The DOPL must be listed as a certificate holder

S280 Roofing Contractor is the specialty contractor roofing classification.

Vermont

There is no State Roofing license to work in Vermont. Some municipalities have local licensing requirements which you will need to check before you begin work

Virginia

The Board for Contractors licenses businesses engaged in the construction, repair, or improvement of facilities on property owned by others. Contractor licenses consist of two parts: the class of license (A, B, or C), which determines the monetary value of contracts/projects that may be performed, and the classification/specialty, which determines what type of work is allowed.

A step by step guide can be found HERE.

Washington

There is no specific registration for roofing contractors in Washington. However all contractors must be licensed with the State department of Labor and Industries.

You are required to:

• Show proof of general liability insurance
• Post a bond of either $6,000 or $12,000.

These bonds are based on credit. So if your credit is not so good they can be expensive. Otherwise they are around $200 for the year.

The application can be found HERE.

West Virginia

Construction contractors, including roofing contractors, must be licensed to work in West Virginia. The license is issued by the Division of Labor West Virginia Contractor Licensing Board.

You’ll need to:

• Pass a trade exam, as well as a business and law exam.
• Contact and provide the West Virginia Contractor Licensing Board with your scope of work in order to verify the classification(s) and the exam(s) required for obtaining your contractor license.
• Your request can be sent to CLBoard@wv.gov.
• You must also show proof of workers’ compensation insurance if you have employees.

Wisconsin

There is no State Roofing license to work in Wisconsin. Some municipalities have local licensing requirements which you will need to check before you begin work.

Wyoming

There is no State Roofing license to work in Wyoming. Some municipalities have local licensing requirements which you will need to check before you begin work.

The post Roofing License Requirements – How to Get Roofing Licence in Every State? appeared first on Contractors Liability.

There are a few simple techniques below that will help you save money and honestly quite possibly be the difference between running a successful business or abject failure. So do yourself a favor and spend some time reading this article.

You will be shown a lifetime of knowledge in a few simple paragraphs that anyone can understand. So let me start you on a journey to success.

Type of Business Entity

This should be the first step in any business plan. To be successful you must plan ahead. There are 4 major types of business entities to choose from:

Sole Proprietorship (DBA)

This type of business is the simplest and most basic. You use your own name or a DBA. It is taxed as a pass-through entity.

The pros of this type of entity are that it is cheap and you can use your own social security number or you can get an EIN (Employer Identification Number). The Cons are that you have no protection from creditors if things go wrong.

Partnership

This is another simple type of business arrangement when 2 or more people start a business together.

The tax information on Partnerships can be found HERE. The pros are that it is simple to start and not very costly to organize. The cons are like the Sole Proprietorship, you have no protection from creditors if things go wrong.

Corporation (INC)

This type of business entity requires that you file paperwork with the Secretary of State where your business is located. The tax information can be found HERE. The pros are that it is relatively simple to form, and it gives you the protection of your assets that are not included in the corporation from creditors in the case of business loss.

Cons, it can be expensive to set up, you will need to possibly file State and Federal Corporate tax returns. Each year there are generally fees paid to the State to keep the corporation in good standing.

Limited Liability Company (LLC)

This type of business entity requires that you file paperwork with the Secretary of State where your business is located. The pros are that it is relatively simple to form, and it gives you the protection of your assets that are not included in the LLC from creditors in the case of business loss. You can choose how the entity is treated for income tax purposes.

Cons, it can be expensive to set up, you will need to possibly file State and federal tax returns depending on how you chose the entity to be taxed. Each year there are generally fees paid to the State to keep the LLC in good standing.

Pro-Tip

It is best to start the business off the right way even if money is tight. You should contact a lawyer or an accountant to guide you through. It is money well spent and may save you future heartache.

Ask your advisor about the costs of forming the different types of entities, including the annual costs to keep it in good standing. There are certain quirks in the various State laws that you need to research. For example in Illinois roofers can not form an LLC the must form a PLLC, it is basically the same thing as an LLC, but if you try to get your roofing license your application will be rejected and you will have to amend your filing with the Secretary of State to change to a PLLC. California requires LLC’s to post an expensive $100,000 bond for Workers Compensation, if you have a corporation it is not necessary. These are just a couple of examples of pitfalls for the unaware.

Do I Need A Roofing License?

You need to do a little research. A number of states require licenses to become a roofer. You can find a list HERE. Roofing is regulated at the State level. Every state has different requirements. Further, there might even be County or Local requirements. The license requirements may be very strict depending on the state you are located in.

For example, Illinois has two license classifications, Limited and Unlimited licenses. To get the license you must register with the State and pass an examination based on your request classification. There are also insurance and bond requirements.

In some instances even though you have a State license a local municipality may require you to register before you can pull a permit. This usually entails filling out their application along with providing them proof of insurance.

There are many resources available online that you can use to find the exact requirements.

Pro Tip

Many municipalities and States may require you to purchase a bond. There is no blanket bond that covers everything. Each bond must be purchased individually, luckily they are usually around $100.

Picking A Name

You need to pick a name for your business. I know this may sound simple-minded but you need to pick a name that sounds professional. I have been doing this a long time and the names people come up with might surprise you. I have heard and seen almost anything. Would you hire a company called 3 Drunks with Hammers, LLC., to install your roof?

Try to keep names simple and easy to spell as well. I wasted many minutes trying to get long email addresses over the phone correct.

Get your domain name as your email address. This does not cost very much and makes you look more professional than using a Gmail account or Yahoo.

Insurance For New In Business Roofing Companies

Getting affordable New in Business Roofing General Liability Insurance can be a daunting task. Roofing is one of the risker contracting trades. Employees can get injured from falls, the roofing process can go wrong and property and persons may be injured.

Most standard insurance companies like State Farm and Allstate do not write General liability insurance for roofers. The companies that do write Roofers Generally do not take new business roofers. At ContractorsLiability.Com we specialize in getting New In Business Roofers Insurance. It is actually our specialty.

We have helped thousands of roofing companies across the country get insurance for the first time over the last 20 years. So let us start with the basics of insurance for your business.

Roofers General Liability Insurance

This is the most basic insurance. In order to be licensed or pull a permit, you will at the very least be required to have an Affordable New In Business Roofer General Liability Insurance policy. This will protect your business from claims for damage caused to third parties’ property or persons. If you do not have this coverage you will be responsible to pay for these items from your own pocket. It is also important to remember that the coverage also includes payment of legal fees in the event of a covered claim or settlement. In some cases, this can be greater than the amount of the loss.

Workers Compensation Insurance For New Roofers

Every State will require you to have Worker’s Compensation Insurance if you have employees. In most instances, you will have to go into the insurance “pool”. This pool is made up of insurance companies that write business in the State. Since worker’s compensation insurance is mandatory the State needs a mechanism to force Insurance Carriers to write business they otherwise would not write.

Since you have no experience with the insurance company to base their rate off expect to pay a lot. Roofing is a high-risk class code so you will pay large premiums even if you have experience. Workers’ compensation insurance is based on your payroll and the class code that payroll is assigned to. Guys up on the roof have a different code than the person that answers your phone. A new in business roofer Workers Compensation Insurance policy premium will be a percentage of your payroll. For employees doing roofing, you can expect to pay as much as 50% or more of your payroll amount as an insurance premium.

Workers Compensation Insurance is required by law and failure to purchase it to cover employees can lead to large fines along with the responsibility to cover any losses by an employee injured on the job. Your General Liability Policy does not cover injury to employees.

Commercial Auto Insurance

A commercial auto Insurance policy for New In Business Roofers provides coverage for vehicles used in your business. If you only have personal auto insurance and are in an accident there is a good chance your insurance company may deny any claim.

They will not provide coverage if you were using the vehicle for income-generating purposes. It is kind of hard to explain to the insurance company how a van covered in your roofing business’s advertising was being used for personal business.

While commercial auto insurance may cost more than personal coverage, you have peace of mind knowing that you will be covered if there is a claim if you are using your vehicles for business purposes. Further, the money paid for commercial auto premiums can be expensed on your business tax return.

The long and short of it is that if you use your vehicles to produce the income you need commercial auto coverage to be properly protected.

Affordable New In Business Roofer Commercial Auto Insurance Policies has various insurance packages that you can purchase. You can add what is called hired and non-owned coverage. It covers commercial auto liability damages.

It includes paying settlements or judgments. It will also pay attorney fees and other court costs that arise as a result of an auto accident for which you or an employee is responsible.

Inland Marine Insurance

This type of insurance covers the tools and equipment used in your roofing business. It protects things like tools, compressors, trailers, and other types of equipment from loss or damage. Remember without this coverage you will have to come up with the money to replace things that are lost or destroyed.

Surety Bonds

To be a Licensed roofer some States like IL, CA, and WA to name a few require you to have a bond to get a State license. Even in these States, local municipalities may require you to purchase a separate bond to pull a permit or register as a contractor. These bonds are relatively inexpensive if your credit is good in most cases under $250 a year.

There are some places that do not require a bond but In your everyday life, you see contractors advertise that they are bonded and insured. You might say I want to advertise that as well. That is a wise choice as it separates you from your competitors by showing that you are financially responsible. A bond can be purchased in these situations for around $150 a year. This will allow you to show prospective clients that you are bonded and insured.

New In Business Roofers Insurance with ContractorsLiability.Com

New in Business Roofing Contractors truly have unique insurance needs. From General Liability Insurance, Workers Compensation, Commercial Auto, Inland Marine Insurance, and Surety Bonds.

Let us take the hassle out of searching for the best New In Business Roofer insurance quote. Tell ContractorsLiability.Com about your business, and we’ll help you find a policy tailored to match your needs at the best price. We are one of the internet’s premier agencies for helping New In business roofers find insurance.

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If you keep reading these tips will make sure if you file a claim, you can get any issues resolved quickly. 

In this day and age, you need insurance if you roof. Even the most careful people have accidents and you need insurance for protection.

The following advice will help your insurer pay quickly for any damage that your roofing company may have caused. A roof insurance claim can be rather difficult if the insurance claims are not done appropriately.

Here are five steps you can follow to file a claim with your insurance provider to handle insurance claims. Most insurance companies have the same claims process, but you may need to check with your insurance company to see if they have a different insurance claim process. 

If you fail to follow these procedures, the insurance company may deny coverage. Your business will have to cover the costs of repairs for all the damaged roof sections caused by the roof repairs.

1. Check documents and capture images

The first thing you must do before contacting the insurance adjuster and filing a roof claim is to document everything. Take pictures of the roof issues. Get on the roof and inspect it. Try to gather supporting evidence that any roof damage issues were not caused by your roofing company.

A Roofing contractor is often blamed by a homeowner and Homeowners Insurance Companies for all the damage that exists, even though some of the damage was pre-existing.  Just as there are unscrupulous contractors, there also are homeowners who will attempt to have a contractor or a roofing contractor’s insurance company pay for damages that were not caused by your work. 

Many times they will not want to file homeowners insurance claims. They will try to shift the blame onto the insurance of the roofing contractor so that the insurance claim does not affect their homeowner’s insurance.

Insurance adjusters make come out and investigate storm damage from things like hail damage after a hail storm and wind damage from high winds. Their homeowner’s policy may not cover the cost for the entire roof, or they may only pay actual cash value (the depreciated value) and not the cost of the new roof as a result of the roof damage claim. While other homeowners insurance companies will value the insurance payment at the replacement cost of a new roof.

It is also in contractors’ best interest to make sure that they do a proper inspection of the repair and make sure they do any necessary repairs to prevent further damage after they inspect the area and materials

2. See if you can work something out

The first thing you must do before contacting the insurance adjuster and filing a roof claim is to document everything. Take pictures of the roof issues. Get on the roof and inspect it. Try to gather supporting evidence that any roof damage issues were not caused by your roofing company.

A Roofing contractor is often blamed by a homeowner and Homeowners Insurance Companies for all the damage that exists, even though some of the damage was pre-existing.  Just as there are unscrupulous contractors, there also are homeowners who will attempt to have a contractor or a roofing contractors insurance companies pay for damages that were not caused by your work. 

Many times they will not want to file homeowners insurance claims. They will try to shift the blame onto the insurance of the roofing contractor so that the insurance claim does not affect their homeowner’s insurance.

Insurance adjusters make come out and investigate storm damage from things like hail damage after a hail storm and wind damage from high winds. Their homeowner’s policy may not cover the cost for the entire roof, or they may only pay actual cash value (the depreciated value) and not the cost of the new roof as a result of the roof damage claim. While other homeowners insurance companies will value the insurance payment at the replacement cost of a new roof.

It is also in contractors’ best interest to make sure that they do a proper inspection of the repair and make sure they do any necessary repairs to prevent further damage after they inspect the area and materials

3. File your claim

If you are not able to work things out, you should file insurance claims with your insurance company. You should notify the insurance company promptly.

Once the claims process is started, you should offer proof to the insurance company. Of the work you did. You should pay particular attention to inspecting areas of the damaged roof that are subject to the claim.

It is also important to know what you are covered for.  There are a number of common claims that are not covered by most insurance companies. You need to know what your insurance company will cover. 

Pro Tip

The best time to find out what your insurance company may cover and does not cover is when you purchase the policy. You need to ask your agent what is covered. You also need to be an educated roofing contractor when buying insurance to find out what is not covered.

There is nothing worse than the surprise of finding out that the type of claim made by a homeowner has no coverage. These amounts will need to be paid from your own pocket

4. Make arrangements for an adjuster’s visit

An adjuster will be assigned to you by your insurance company. You should make necessary arrangements for him to come and assess the damage (Do not forget to give them accurate contact information for your business).

You should schedule a mutually agreeable time for an inspection. You, as the contractor, should be the contact. You should be there when the claims adjuster is there during the inspection. During the visit, the roof and related areas will be inspected to see if the insurance company will pay the claim.

You, as the contractor, did the repair to the roof, so you are the most knowledgeable about the roof claim. You have the ability to point things out on the roof that may determine whether or not an insurance claim is paid.

You should go over with the insurance adjuster what the approved repairs between the contractor and homeowner were. The insurance adjuster will inspect the repair and decide whether there is coverage. If coverage is approved, the claim may be paid. The homeowner may not be satisfied with the amount and should obtain multiple estimates that need to be submitted to the insurance company before a contractor can be hired to repair the roof or even a roof replacement.

5. Do necessary work

As the contractor, you can do the necessary replacement that may be needed. You should also follow up with any items requested by the insurance company regarding their roof inspection.

As a roofer, you should take pride in having roof insurance coverage.  Customers often use social media sites to hire roofing contractors in today’s digital world. If you have negative reviews, it can greatly affect your bottom line.

Showing you have insurance and you care about the work you do will go a long way in making you successful in the Roof Business.

You already know how to roof, so are you ready to learn more about insurance and protect your business? Get in touch with us or get a free quote today!

The post 5 Steps to File a Roofing Insurance Claim appeared first on Contractors Liability.

Commercial auto insurance covers vehicles used for any business purposes. Different scenarios include:

1. You’re a sole proprietor, self-employed, or own a small business that uses a vehicle in any capacity (other than commuting from home to the office). 
2. You own a vehicle (or a fleet) and pay someone else to drive it, making you liable for their insurance. It is the employer’s responsibility to sufficiently insure the vehicle with the right coverage for business use. Whether it’s one vehicle, 5, 50, or 500, any vehicle used for work purposes needs commercial auto insurance. The good news is that any company vehicle covered by commercial auto insurance is tax-deductible. 
3. You pay an employee to drive their personal vehicle for work-related driving, you must insure the vehicle for work-related purposes only. For example, if you own a home handyman business and your workers use their own trucks, you must put commercial car insurance on their vehicles.

4. Contractors who are not employees of your company are required to insure their own vehicles. So if you hire contractors, you are not responsible.

If you own a contracting business, commercial vehicles are one of your company’s most significant expenses. That’s why it’s so important to ensure these valuable assets are fully covered. To help choose the best commercial auto insurance policy for your small business, this article will explore the coverage, cost, and benefits of this insurance.

• Liability coverage: Bodily injury and property damage liability insurance will cover loss of life or property, as well as damage and harm done to any person or property caused by your vehicle.
• Medical payments: Personal injury protection covers any medical expenses caused by diagnosis and treatment of any bodily injury or physical damage caused by the collision, regardless of fault.
• Collision coverage: Covers all costs involved to tow and repair or replace the vehicle in the event of a collision. It will often include the cost of a rental car suited for your work while you wait for repairs or a replacement.
• Uninsured motorist: If the vehicle collides with an uninsured motorist––meaning the other driver wouldn’t be able to cover the costs––your insurance policy would pay the damages up to policy limits. This coverage might also payout for the charges owed by an underinsured motorist if their own vehicle insurance coverage limit doesn’t cover the expenses caused by the collision.
• Comprehensive coverage: Covers the costs involved for repairing or replacing your vehicle if it incurs damage due to theft, vandalism, flood, fire, or any damage caused if your car is hit by an object or another vehicle.

Do I Need to Have Commercial Auto Insurance?

The short answer? It depends. Your need for commercial auto insurance depends on your industry/occupation. Here are a few examples of professions or scenarios that require commercial auto coverage:

• Transport goods or people in your vehicle for a fee: Suppose you drive for Uber, Lyft, GrubHub, Amazon, or a similar company; you’re going to need coverage. Essentially any time you’re using your vehicle for work purposes, it needs to be covered by commercial auto insurance.
• Provide a service with your vehicle: Bus? Tow truck? Snowplow? Ice cream truck? If you use your vehicle to provide a service, you need commercial auto insurance.
• Need more liability coverage because of the nature of your work: If you transport the elderly on field trips or something similar, you’ll want to make sure you have enough professional liability coverage in case something goes awry. If your work puts you or your passengers or cargo at a higher risk of injury or damage for any reason, you need commercial auto insurance coverage.
• Operate a fleet: Whether your fleet is two delivery vans or 100 box trucks, the more vehicles you have, the more auto insurance coverage you need.
• Haul weight in tools or equipment: If you’re using your vehicle to transport heavy loads––tools, equipment, cargo, etc.––your car has a higher risk of damage and will require commercial auto insurance.
• Are not the sole owner of the vehicle: If vehicle ownership is in the name of the business entity, a co-ownership share agreement is in place, or if the vehicle has multiple drivers for work purposes, commercial auto insurance covers all drivers without individual policies. If your group of drivers is regularly changing, you need commercial auto insurance.

Some people make the mistake of thinking that commercial umbrella insurance covers vehicles, but it doesn’t always. Contact us today to make sure you have the auto coverage you need for your business.

Commercial vs. Personal Auto Insurance Examples

Commercial and personal auto insurance are two different types of insurance that cover different events. Commercial auto insurance is only available for vehicles used for work purposes. Personal auto insurance is for when you’re driving your car for personal reasons.

Most personal auto insurance policies have exclusions, which means they may not cover your vehicle for business use or only offer minimal coverage for business use. Likewise, your commercial auto insurance wouldn’t cover loss or damage caused when using a business vehicle for personal use. That’s why you need both. Here are some examples of the two being used in the same scenarios:

How Much Does Commercial Insurance Cost?

Commercial auto insurance costs a little more than personal insurance because it offers broader coverage and higher liability limits. The cost of commercial auto insurance rates are affected by a few factors, including:

• Type of vehicle
• Number of vehicles on the policy
• What purpose the vehicles are used for
• Who will be driving (driving records matter)
• Your specific business needs

Each business is unique, so it makes sense for commercial auto insurance policies to be tailored to best suit each company.

Business Insurance with Contractors Liability

Contractors have unique insurance needs. They typically carry contractors liability insurance to protect the job site, materials, and people who could be injured on the job site. However, liability insurance does not cover vehicles, so business owners in some industries need to carry both commercial auto insurance and contractors liability insurance.

Commercial auto insurance covers all events while the vehicle is being used for business purposes. It doesn’t matter if your business involves plumbing, roofing, or even driving an Uber; you need commercial auto insurance any time you use your vehicle for work.

Let us take the hassle out of searching for the best insurance quote. Tell Contractors Liability about your business, and we’ll help you find a policy tailored to match your needs at the best price.

The post Do I Really Need Commercial Auto Insurance? appeared first on Contractors Liability.

Please be advised:

Due to statute changes in Illinois for LLC, all businesses listed as LLC’s providing professional services licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) are now required to register as a Professional Limited Liability Company (PLLC) with the Illinois Secretary of State’s Office (ILSOS).

The PLLC must also list a specific purpose clause for the type of professional service being provided. Please have your Articles of Organization amended to a PLLC and the purpose clause amended to show your professional service.

What does this mean to you if you have an LLC?

It means your renewal will be rejected if you do not file an amendment with the Secretary of State. You should contact your lawyer or accountant ASAP to make this change or you can follow the instructions on the State’s website to make the change yourself.

What Else Do You Need to Do to Renew Your Illinois Roofing License?

To keep your license in good standing you must submit to the Illinois Department of Financial and Professional Regulation (IDFPR) the following:

1.Renewal Application and Fee

This form will either be emailed or mailed to you. It will tell you the amount you need to submit to the State to renew your license. You can get a copy by going HERE.

2.RF-INS Form

This is a form required by the State for renewal. It shows them proof of insurance. Be aware that the State will not accept an ACORD or Standard Certificate of Insurance. It has to be on the RF-INS Form.  A copy of the form can be found  HERE ON PAGE 5. Pro Tips: The State no longer requires “Live or Ink” signatures from the insurance agent. The laser-printed signature is acceptable. The qualifying individual signature must be in ink and not a copy.

3.Bond

There are two license classifications:

3.1 Limited License

A limited license is for contractors whose roofing business is limited to roofing residential properties of eight units or less. This bond is for $10,000 and needs to be for 2 years expiring 12/31 of odd-numbered years. The cost for this bond is $175 total for the 2 years. The State has a specific form that must be used initially, for renewals a continuation certificate with the license number written on the form is acceptable.

3.2 Unlimited License

The Unlimited License is for contractors whose roofing businesses work with residential, commercial, and industrial properties. This bond is for $25,000 and needs to be for 2 years expiring 12/31 of odd-numbered years. The cost for this bond is $437.50 total for the 2 years. The State has a specific form that must be used initially, for renewals a continuation certificate with the license number written on the form is acceptable.

Things to Double Check When Submitting Your Renewal

Here are a few things to double-check before submitting your renewal:

• Make sure you sign the RF-INS form in ink. Send original to the State. Like I said previously the State does not require the insurance agents signature in ink anymore.
• Make sure everything is spelled correctly and the address matches exactly what is on file. They are sticklers about this. Also no crossouts or whiteouts are allowed.
• Make sure your bond continuation certificate has your license number on it.
• Make sure you have converted your LLC to a PLLC, trust me they check.

Good luck with your renewal process and if you would like to get an Illinois Roofing Bond or affordable Roofers General Liability insurance call me at (866) 225-1950

The post Your Illinois Roofing License Renewal and Your Limited Liability Company on 2021 appeared first on Contractors Liability.

In this article, we look at what product completed operations coverage is, exactly what it covers (and what it does not cover), who needs it, and how claims are filed.

What is Product-Completed Operations Coverage?

Product completed operations coverage (PCOC) is a type of business insurance that protects you against liability for property damage or bodily injury to a third party caused by your product or work after the work is completed. Sometimes called Coverage A, the coverage only applies when a product leaves your premises or when a service has been completed.

That’s the coverage that you are looking for? Let our experts guide you in the insurance process.

Product Liability vs. Completed Operations Liability

While they are usually covered under the same clause, products liability and completed operations liability insurance are different things. If your company manufactures or sells products, product liability protects you from financial loss resulting from product liability claims.

Completed operations, on the other hand, are protection for service providers, like contractors, roofers, pest control, plumbing, or some other service-oriented businesses. If your business provides a service, clients can file a lawsuit if the work you completed causes bodily injury or property damage. An example of this is when you complete a roofing job and that roof collapses.

What Does the Policy Cover & What Are Its Limitations?

Product completed operations insurance covers medical costs, repair costs, and legal fees in the case of lawsuits brought about by events such as:

• Accidental Contamination
• Accidental Defects
• Labeling Mistakes (click here for a few examples from the FDA)
• Accidental or Malicious Tampering
• Poor Quality or Inadequate Service or Work
• Defective Products

Exclusions and situations PCOC does NOT cover:

• Damage to Your Product: The PCOC policy will not cover claims where your products have caused damage to your own product. For a claim to be covered, it must involve injury to a third party or damage of their property.
• Damage to Your Work: Damage to your completed work is not covered by PCOC insurance. If you built a structure and later damaged that structure yourself, it would not be covered by product liability insurance.
• Damage to Impaired Property: If you cause damage to property that renders it unusable or impaired in any way, the insurance company will not cover the losses caused by this, even if your work is proven to be inadequate or defective (meaning it wasn’t fit for use or consumption).
• If There is no Bodily Injury or Property Damage: If this is the case, the claim is outside of the PCO insurance agreement.
• Product Recall Costs: Any costs arising from a product recall will not be covered.

In addition to exclusions, each policy will have specified coverage limits (the total amount it will payout for each claim and the aggregate limit for all total claims over a time period).

How Are Products-Completed Operations Claims Filed?

As with all insurance policies, certain criteria must be filled for a successful claim to be made:

1. The claim must allege bodily injury or property damage.
2. The claimant must be able to prove that the bodily injury or property damage came from your products or work. There must be a clear connection or causation between your products or services and the alleged injury or damage.
3. The injury or property damage must have happened away from your business premises, or must have occurred when the product was no longer in your possession, or after the work was complete.
4. The injury or damage must happen within the policy period.

If you are sued and the claim meets these criteria, you may file a claim against your PCOC insurance for coverage. The insurance company will evaluate the claim and payout up to the occurrence limit or aggregate limit.

Who Should Buy This Kind of Coverage?

The following should consider the benefits of purchasing a product completed operations insurance policy:

• Any business that manufactures, sells, handles, distributes, or disposes of any type of goods or products.
• Service providers (generally, home service providers).
• Any aspect of construction work.
• Any company working with toxic chemicals, such as a pest control company.

Some industries and occupations have a higher risk of product failure than most. The following, for example, should especially consider obtaining product-completed operations coverage:

This is not an exhaustive list, just some examples of the wide variety of businesses that should consider extra coverage for product completed operations liability insurance. Your business can be hit with a civil lawsuit at any time. It’s important to have the right liability coverage for every situation.

If your business is on this list you should consider get insurance to protect it.

Some Situational Examples

• A beauty salon waxes a customer’s eyebrows. The wax is very hot and when the customer gets home, their eyebrow and eyelid area is blistered.
• A retailer’s outlet has a seasonal sale, so the store is particularly busy. A section of ceiling tiles comes loose and falls on many customers and employees, injuring several people. They all need to be checked by paramedics and some need to go to the hospital for further treatment.
• A restaurant buys your products for use in their recipes. Several customers report sickness several hours after eating at the restaurant. Investigation shows your product was contaminated.
• A garage door installation company installs a new door. A week later the automatic door opening mechanism fails and the door crashes down onto the customer’s car, causing serious damage to the vehicle.

(In these examples, the product completed operations claims meet the criteria for the policy, but product recall costs would not be covered.)

Get Covered with Contractors Liability

While there’s a small amount of PCOC included in your commercial general liability policy, if you’re offering any type of service or creating a product for use away from your business, you need to make sure you’re fully insured against claims of bodily injury or property loss or damage.

Contractors Liability can help make sure you and your business have enough insurance to cover damages in any foreseeable scenario. We’ll put you in touch with an insurance agent who will listen to what you need then find the best business owner’s policy to suit you and your business.

Ready to learn more and protect your business? Get in touch with us to get a free quote today!

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Cumulatively, these accidents added up to $11.5 billion of losses. In addition to injuries and fatalities in the construction industry, there are countless more cases of costly property damage and losses. If you’re a contractor, the best way to protect your company and your workers is to be adequately insured. 

An insurance provider extends financial protection or reimbursement against losses to an individual, organization, or business in exchange for premium payments. The most common insurance policy for contractors to obtain is liability insurance.

In this case, a general liability insurance policyholder is protected financially against claims made by a client related to damage or injuries caused by the contractor or their employees. Policyholders and additional insureds are also covered by a liability policy if a third party sues for damages or loss occurring on their property. 

Policyholders and additional insureds are also covered by a liability policy if a third party sues for damages or loss occurring on their property. 

With various types of commercial insurance, choosing the right types of policies for your business depends on several factors, including:

• The industry you’re in.
• What kind of property you need to insure.
• How many people need to be insured.
• The value of property and equipment you need to insure.

For example, builders have very different insurance requirements than lawyers. General liability, on the other hand, is a term that describes a policy that covers a wide range of risks. 

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In this article, we’re going to look at the similarities and differences between named insured and additional insured when it comes to your general liability insurance coverage. Let’s break it down to basics first and then dive into the finer details below. 

What Does Named Insured Mean?

The Named Insured is the person or entity whose name appears on the insurance policy certificate, stating they are insured on the dates specified. There can be more than one named insured, and they usually all appear on the first page of the policy document. 

Named insureds are most often the business entity itself, any subsidiaries, and the business owners. Named insureds receive 100% of the full benefits of the policy and usually have input into policy decisions, including policy coverage type, policy limits, and amounts.

The first named insured is typically the policy owner, and they are generally responsible for paying the premiums. All named insureds receive notice of any change to or cancellation of the policy and might be liable for premiums.

Additional named insureds may be added to the policy at a later date. They generally aren’t responsible for the premiums but are entitled to cancellation notices or any changes to the policy coverage. They are covered as a named insured and usually are a partner, co-owner, or affiliates of the named insured.

What does Additional Insured Mean?

A close up of an insurance broker’s hands talking to a customer. An additional insured is a person or entity covered by the policy for general liability through an added endorsement. Generally, these endorsements protect the additional insured from being sued due to the fault of the named insured.

An additional insured party is not responsible for the terms and conditions of the policy or for paying the premiums. They are also not typically notified of changes or cancellations to the policy.

Two types of additional insured parties can be added to a policy. Named additional insureds are listed in the addendum. These are usually clients or partners (people with an insurable interest who stand to lose if they are sued due to a mistake your company made).

The policy can also have a blanket additional insured clause covering people not listed in the document. For example, a blanket additional insured endorsement typically occurs when a general contractor requests to be added as a subcontractor’s additional insured.

Before they extend coverage to additional insureds, insurance companies generally list requirements that must be met.

For example, the insurance company may require those additional insureds, like subcontractors, to contract with a general contractor who has an additional insured clause written into their policy.

If the insurance company agrees that the person or entity meets its requirements, they will issue a certificate of insurance to the additional insured.

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3 Main Differences Between Named & Additional Named Insured

The three things that differentiate between named insured and additional insured status are claims, coverages, and policy/endorsement.

1. Ownership

   Named insureds are the policyholders. They are responsible for purchasing the policy, negotiating the details, and paying the premiums. Additional insureds are not decision-makers and are not responsible for premiums.

2. Coverage

   The named insured is always covered by the policy, while an additional insured has certain limitations on the coverage provided. Only incidents related to the named insured’s work and responsibilities are covered.The additional insured isn’t covered if the damage, injury, or loss aren’t related to the named insured. The additional insured’s liability coverage might be for a single event or for an extended time.

3. Policy vs. Endorsement

   The named insured is listed on the front declarations page, usually in the opening section of the insurance policy document. The additional insured is added through an additional insured endorsement addendum at a later date, as the need arises.

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It can be confusing, but it comes down to this: A named insured has their name right there on the front of the document and participates in the decision-making related to that policy.

In contrast, an additional insured is added on at a later date. The named insured has full coverage from the policy, while the additional insured is only covered when the claim directly relates to the named insured. Regardless, they are both excellent forms of risk management.

Lining up the right insurance can be complicated, especially for contractors that often find themselves in a high-risk industry.

Making sure you have the right coverage for your business insurance is not just important, but it could save your business from financial devastation should a major accident occur that affects yourself, your employees, or your clients.

Let us take the hassle out of searching for the best insurance quote for your contracting business.

Tell Contractors Liability about the specific needs of your business, and we’ll help you find a policy tailored to match your company at the best possible price.

If you need help with adding named insureds or additional insureds to your business insurance policy, Contractors Liability can help you navigate the insurance markets and make sure your business is protected.

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The legal jargon surrounding insurance policies and associated contracts can be confusing for many, making it difficult for the average consumer to know exactly what they’re purchasing. In order to make an informed decision and choose the right liability coverage, it’s essential to first understand the different terms.

Here are some of the common terms you need to understand about a liability insurance policy.

What is general Liability?

General liability is a form of comprehensive insurance that offers coverage in case of damage or injury caused by your work, equipment, or supplies on your jobsite. For example, if a worker tosses a shingle off a roof and hits someone, or if your crew leaves a pile of wood on the lawn and someone trips and falls, it may result in a lawsuit against you as the employer/contractor. These types of accidents happen all the time, and a general liability policy protects you and your business financially in such cases.

General liability insurance does not cover personal injury to your own employees. (That is covered by workers’ compensation, which is a different type of insurance.)

What is a policyholder?

A policyholder is a person or company who purchases an insurance policy. The policyholder is often referred to as the “named insured.” The policyholder is responsible for paying the insurance premiums and can make adjustments or changes to the policy.

What is a Certificate of insurance

A Certificate of Insurance (COI) is a document that proves an insurance policy exists. The standardized Certificate of Insurance form, called the Acord 25, is issued by the insurance company or broker and contains all the important information needed to confirm coverage is in place, including:

• Name of policyholder
• Policy number
• Policy effective date and cancellation/expiration dates
• Type of coverage
• Coverage limits
• Policy coverage limitations
• Additional insureds 

Your entire insurance policy contract can be many pages long. The COI, however, is a one-page document that summarizes the most vital information contained in your policy.

Insurance certificate holder vs. additional insured

Insurance certificate holder

The insurance certificate holder is the individual who receives the COI from the insured, establishing that the certificate holder has proper proof of coverage. COIs, however, don’t alter the insurance policy in any way nor does it permit the certificate holder to make a claim on the policy; it only provides proof of insurance. 

Additional Insured

Additional insured in reference to general liability insurance policies, provides coverage to other people or groups who weren’t originally named in the policy. In short, an additional insured endorsement: 

• Applies to anyone who is not the policyholder, but is covered by the insurance policy. 
• Protects the additional insured under the named insured’s policy and can thus make a claim as the result of a loss

What are de benefits of an insurance Certificate Holder Status?

1. The policyholder is not liable for any loss or damage beyond the sum insured. 

This stops the claimant from suing the policyholder for amounts above and beyond the insurance payout sum, which may also positively impact a business owner’s bottom line.

2. A certificate holder may recover damages from an insurer who has failed to pay out on a claim. 

If an insurance company refuses to pay a claim, the COI holder has the ability to potentially recover damages from the insurer.

3. It can be used in place of an indemnity bond when making payments under contract laws.

An indemnity bond gives the holder the right to collect any amount from the principal that the insurer has paid out in a claimed situation. In the case that the insurance company must pay another contractor to complete the project, they will make a demand on the bonded contractor that they cover this expense.

4. An insurance certificate holder can help protect you from damages claimed that have been caused by burglaries, fires, and natural disasters. 

Even the most careful and organized job sites can be unexpectedly struck by fires, tornados, and other natural disasters. Even losses caused by burglary are covered, so your business needn’t collapse in some of these worst-case scenarios.

5. Homeowners who ask for an insurance certificate holder are less likely to be victims of crime.

Unscrupulous contractors are rarely insured, and homeowners who hire contractors without verifying insurance often have no recourse if the work is shoddy or incomplete. Asking for verification of insurance protects homeowners from being exploited by criminals posing as contractors. Having an insurance certificate holder can result in more work for fully insured contractors as a result.

6. Improved risk management all around 

Insurance certificate holders can also give you peace of mind by providing protection against liability claims like slip-and-fall accidents on job sites. If you’re found to be responsible for damages occurring to a third party, your insurance will cover those damage costs and medical costs associated with your business.

What are de benefits of an additional insured Status?

1. Protects you in the event of a lawsuit

An additional insured status extends coverage to people not specifically named in the original policy. That is, the policy will pay out for claims and damages related to the additional insured in the case that the additional insured are also liable.

In addition, a waiver of subrogation is a special type of endorsement on a property/casualty insurance policy. It restricts the insurer from taking legal action against the additional insured responsible for the loss. Essentially, it’s a guarantee that your insurance policy will protect the third party in case a claim is being made against them in relation to work carried out on your behalf. 

2. Prohibits people from suing you for damages that they caused themselves

Job sites can be hazardous not only to your crew, but pose a threat to vendors, subcontractors, and anyone else who might set foot on the property. An additionally insured endorsement adds extra coverage for unpredictable circumstances. A person responsible for any damage to your business can’t then cause further issues by making a claim against you for any effect the damage they caused had on them. 

3. Reduces the cost of premiums

In the course of a single job, you may have to cover many different third parties or subcontractors. Naturally, every time an additional insured is added to an insurance policy, the cost rises. If you’re having to add a hundred or more separate names per job, that adds up quickly. Each subcontractor will require a COI from you and that can take time as well as increase the cost.

Instead of separately listing each and every person on the COI, a simpler and more comprehensive method is to add a “blanket additional insured” clause, which covers all third parties without having to have their names listed. You can get blanket coverage for far less than you could get coverage for a large number of people. Blanket coverage is less expensive than individual policies for subcontractors.

4. Allows you to avoid expensive litigation costs if someone is injured on your property

If your business is sued for a covered claim, the policy will cover the costs of your defense (i.e., attorney’s fees and related defense costs).

5. There is no policy limit on what type of coverage it provides

Whether the third party is affected by property damage, personal damages, bodily injuries, or medical bills, your blanket additional insureds coverage is not limited by the type of damage.

Get Contractors Liability & protec your business

Contractors Liability works for you, the contractor, and we focus on putting your needs first. We provide you with the best kind of insurance coverage at the best rates available. 

If you need a custom-tailored insurance policy, whether it’s commercial auto insurance or general liability, we’ve got you covered. 

Need to protect your business and team members from unexpected financial loss? Get in touch today to safeguard your business, get a free quote, and learn about your coverage options!

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On large-scale construction projects, there are usually multiple teams involved. Teams and services can range from electricians, plumbers, roofers, and more. That’s why it’s important to understand the difference between a Contractor and a subcontractor. Who does what? Who’s in charge of the complete project? Who handles payments?

In this article, we’ll review the main differences between contractors and subcontractors, and how both of these parties should be covered with proper liability insurance.

Contractors vs Subcontractors

On the surface, there may not seem to be much of a difference between contractors and subcontractors in the construction industry. After all, they both work on construction projects. On closer inspection, however, these two parties mean completely separate things.

What are contractors?

Contractors, sometimes called general contractors, are companies that a homeowner or property owner hires directly to complete a construction project.

The general contractor works to secure contracts with additional suppliers and service providers (subcontractors) while overseeing the entire project scope. Contractors typically handle these main responsibilities:

• Oversees and manages the bottom line/budget.
• Remains in direct contact with the homeowner.
• Coordinates all the work, either with their own team, or subcontractors where necessary, to complete the project to the homeowner’s satisfaction.

Coordinates all the work, either with their own team, or subcontractors where necessary, to complete the project to the homeowner’s satisfaction.

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Why are subcontractors?

Subcontractors, on the other hand, are businesses or self-employed individuals that general contractors hire to take care of the smaller, trade-specific projects necessary to meet the homeowner’s requirements. Many subcontractors are business owners who work with multiple general contractors to keep a steady flow of jobs.

Subcontractors typically have specialized skill sets or an area of expertise. When a construction project requires plumbing, drywall installation, roofing, or electrical work, the construction manager or contractor will likely hire subcontractors to take care of these specific jobs.

A subcontractor’s work is on a contractual basis, just like the general contractor. The key difference, however, is that the subcontractor is under contract with the construction company, not the homeowner (the construction company is under contract with the homeowner, and the subcontractor is under contract with the construction company).

Are you a subcontractor and are being asked to carry on your own insurance?

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Main Differences & Takeaways Between Contractors and Subcontractors

Even though both contractors and subcontractors are business owners who play a role in the construction projects, there are some crucial differences between the two.

The biggest difference? The payment chain

The biggest difference is that subcontractors are not exactly employees, but independent contractors. This distinction is important for both tax and labor laws. However, even though subcontractors aren’t employees, the general contractor has certain rights and responsibilities based on the relationship with the subcontractor.

In most cases, the lender or property owner requires the general contractor to obtain lien waivers from all subcontractors and suppliers who’ve worked on the project. This is fairly easy for the first tier, but when you’re dealing with subcontractors who engage in further subcontracting, the contractor may not be aware. This can complicate things since the lower-tier subs still have the right to file liens.

Before payments are released, the contractor may need to collect the lien waivers from everyone in the payment chain. Collecting and managing the paperwork for everyone in the chain can be quite complex.

Retainage, or a sum of money that’s held back from contractors and subcontractors during the construction project, is another issue. Many construction contracts stipulate that a certain amount (typically 5% to 10% of the total contract price) is withheld until the project is nearly complete. This leads to cash flow issues, of course, but also means that contractors may have to go above and beyond (possibly losing money in the process) to collect it from property owners.

Subcontractors, conversely, often have to deal with issues of slow payment or in some cases, non-payment. Since they don’t have any direct connection to the homeowner, it means they’re waiting for the contractor to receive payment, then forward payment to them. The further down the chain a subcontractor is from the general contractor, the greater the threat of non-payment.

Everyone on site needs Contractors Liability Insurance

Regardless of what type of contractor you may be, whether you’re a general contractor in charge of the entire project, or a subcontractor handling only a small portion of a larger project, the reality is this: Everyone involved needs contractors liability insurance.

There’s always the risk of property damage or bodily injury on a construction job site. Even though you may be a subcontractor, you’re not an employee and are responsible for your business’s actions.

Contact us today to learn more about how we can tailor an insurance coverage plan to fit your needs. Your quote is free!

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According to Statista, 8.2% of contractor professionals and managers are uninsured, leaving this group vulnerable to unexpected financial loss that can potentially devastate their bottom lines and operations.

Nearly every type of business faces liability risks, so every business needs insurance and proper coverage. Contractors are especially susceptible to these risks due to the physical and equipment-heavy nature of the work.

The benefits of liability coverage can’t be overstated. Business insurance protects you and your company against financial losses when the unexpected (but completely possible) happens. Construction sites can be dangerous places riddled with all sorts of risks and potential for bodily injury. The bottom line is this: If someone can sue you for something, you need to insure against it.

Insurance is also a great selling point. Businesses and homeowners alike are leery of hiring an uninsured contractor and will probably ask for proof of insurance. Why? Your insurance protects them, too. If something happens to one of your crew members on their property, homeowner’s insurance will not cover the damages.

Instead, there are two types of insurance policies that are better suited for contractors and their work—general liability and professional liability.

What is General Liability Insurance?

Commercial general liability coverage helps protect your business and reputation from common risks. General Liability insurance has three components:

1. Personal Injury and Property Damage Liability

This pays legal defense costs for lawsuits stemming from bodily injury claims or property damage claims. (Work-related injuries are covered by a different type of insurance, workers’ compensation insurance).

Bodily injury insurance covers the costs when people who do not work for you get a physical injury on your job site. For example, if you are building a home and a neighbor trips on a roofing tile and breaks an ankle, he or she could sue for damages. Property damage, conversely, would include something like breaking a window while painting a building.

2. Personal and Advertising Injury

Personal and advertising injury liability insurance protects you in case you are sued for:

• Libel or Slander
• Having someone arrested for false reasons.
• Copyright infringement.
• Malicious prosecution.
• Stealing an advertising idea.
• Wrongful eviction.
• Committing an invasion of privacy (walking into a customer’s home without permission).

3. Medical Payments

If you’re sued for bodily injury, this part of your insurance coverage pays the medical bills for the injured person.

What Does a General Liability Policy Cover?

General liability insurance covers your costs for legal expenses related to third-party lawsuits. In other words, if you are sued, general liability coverage pays all the costs associated with going to court: legal fees, court costs, and settlements or judgments.

What General Liability Insurance Does Not Cover?

It’s equally important to understand what isn’t part of general liability insurance coverage and what kinds of insurance covers other issues. Here’s what’s not covered:

• Worker injuries: People who work for your company are covered by workers compensation insurance. (Texas is the only state that does not require you to carry this insurance.)
• Mistakes: Mistakes such as shoddy workmanship or materials are not covered under general liability. It is instead covered by professional liability insurance.
• Vehicle-related issues: Accidents and other vehicle-related injuries or damage are covered by commercial vehicle insurance.
• Punitive damages: Punitive damages are intangible injuries like mental anguish resulting from a traumatic experience. General liability coverage does not typically cover punitive judgments.
• Intentional acts: General liability won’t cover your costs if your employee gets angry and starts a fire or commits otherwise intentional acts of damage and harm.

How Much Does General Liability Insurance Cost?

Rates vary based on a lot of factors. Your rate will depend on:

• Your job specialty: A roofer faces very different types of risk when compared to a painter or an interior decorator.
• Geographic location: Rates vary by different states and counties. In heavily populated urban areas, insurance tends to cost more than it might in rural areas.
• Number of employees: The more employees you have, your business naturally faces more risk and will need to extend coverage for everyone who is liable.
• Deductibles: Much like car insurance, if you set a higher deductible, you pay lower premiums.
• Amount of coverage: Naturally, you pay less if you choose $100,000 of insurance coverage than if you choose $1 million in coverage. The amount of coverage you choose will likely depend on the size of your company and the contracts you typically land. Your risk is greater when you are working on a 10-story office building than on a private house.

Who Should Take out General Liability Insurance?

Since general liability insurance covers a wide range of common risks and physical damage, almost every large and small business owner who has an office or a store or who goes out to job sites should seek proper coverage. For example, an architect who meets clients in his office needs coverage, and so does a handyman who works for homeowners.

What is Professional Liability Insurance?

Professional liability insurance (PLI) is a different type of coverage also known as errors and omissions insurance. It helps cover the court costs and associated fees in the event that a negligent act, error, or omission is made by your business. Typically, this type of insurance is used by professional service providers, like accountants, lawyers, real estate professionals, computer programmers, and medical professionals. However, contractors can still take out professional liability insurance coverage.

What Does a Professional Liability Insurance Policy Cover?

Most court costs and other financial damages arising from service errors are covered. Some examples are:

• Medical mistakes: Unintentional malpractice insurance is one type of professional liability insurance.
• Accounting errors: If an accountant makes a mistake that costs the client, the client can sue.
• Programming errors: If an app developer builds an app for a business and a programming error costs the client money, the app developer may be covered by professional liability insurance.

What Professional Liability Insurance Does NOT Cover

Professional liability coverage does not include:

• Criminal prosecution.
• Personal or bodily injury claims.
• Damage to business or commercial property.
• Civil liability, aside from what’s listed in the policy.
• Cyber liabilities such as data breach.

How Much Does Professional Liability Insurance Cost?

The cost of professional liability insurance varies by location, profession, and coverage limits. It can cost as little as $20 per month, but a doctor with a history of malpractice claims can pay substantially more.

The cost can also vary by state or county. An AMA study found: “In some areas of New York, premiums for obstetricians/gynecologists reached $214,999… while premiums for obstetricians/gynecologists in some areas of California were $49,804.”

Who Should Take out Professional Liability Insurance?

Professional liability insurance is designed to protect companies or professionals that provide services in which work products are not physical. This might include web developers, tax preparers, law firms, and cyber security firms.

Protect Yourself and Your Business With Contractors Liability

Picking the right insurance for your business can be challenging. Reputable insurance companies will help you negotiate the contract terms and get the business liability coverage you need.

The type of insurance you choose depends on the type of services you offer. Building contractors primarily need general liability insurance to protect against all the accidents that might happen on a job site.

Looking for more information on what kind of insurance your contracting business needs? Call now or get a free quote now!

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