Quick Answer: What Insurance Should I Require From A Contractor?

Do I need public liability insurance as a contractor?

So it’s vital for contractor to have their own public liability insurance, not only because your contracts will often require it, but because without insurance you are exposing yourself to massive financial risk..

How much liability insurance should a contractor have?

Most third parties that require a contractor to have a general liability policy are looking for a $2 million aggregate coverage limit to get on the job. For this reason, we advise all contractors to carry $2 million in aggregate coverage.

What happens if a contractor is not insured?

Without it, you could be held responsible for any injury or damage your contractor causes. Additionally, hiring a contractor without insurance limits your ability to remedy the damage caused by faulty construction, such as water damage or fire.

Who is liable for an independent contractor?

By contract, as a general rule, employers are not liable for the acts of independent contractors unless the work is “inherently dangerous activity.”

Can an unlicensed contractor sue me?

Fact! It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs. … This means that if an unlicensed contractor tries to sue someone who hired him/her for unpaid work, no California court will enforce payment!

Should I ask to see contractors insurance?

Any builders you hire should have their own general contractor liability insurance — ask to see proof. The insurance should cover: Any bodily injury or property damage the firm accidentally causes to you, your family, and your property.

What kind of insurance does a contractor need?

What Kind of Insurance Should General Contractors Have ?Contractors Insurance. Facebook Twitter Google+ WhatsApp. … Commercial General Liability. This insurance policy provides base coverage. … Professional Liability. … Commercial Auto Insurance. … Excess Liability. … Umbrella Insurance. … Bond Insurance. … Worker’s Compensation Insurance.More items…•

Do I need indemnity insurance as a contractor?

If you’re starting out as a contractor, chances are you will be obliged to take out some kind of business insurance as a condition of your contract. You don’t often hear of IT contractors getting sued for professional negligence.

What are the risks of hiring an unlicensed contractor?

Hiring an unlicensed contractor could cost you big. If the work does not meet local building codes, or the contractor doesn’t pull the necessary permits (which an unlicensed contractor cannot do), you will be responsible for making the repairs to meet code.

How do you know if a contractor is insured?

Contact the agent or the company and request a certificate of insurance. This certificate will prove that the contractor has liability insurance coverage and worker’s comp.

What type of insurance coverage is traditionally used by contractors?

1. Commercial General Liability Insurance. General liability insurance, commonly referred to as commercial general liability (CGL) insurance, is usually the first choice and most common type of insurance coverage that a contractor will seek out.

What is the average cost of professional liability insurance?

$59 per monthRegardless of policy limits, the median cost of professional liability insurance is $59 per month ($713 annually). The median cost offers a more accurate estimate of what your business is likely to pay than the average cost of business insurance because it excludes outlier high and low premiums.