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Does general contractors insurance cover against contractor not finishing a job?
Wiki User
∙ 13y ago
Nope. What you are asking about is called a "performance bond".
Wiki User
∙ 13y ago
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Why is general contractor insurance required?
Contractors will be required to carry a minimum of public liability insurance when working on sites. This provides indemnity against damage to property or persons caused by the contractor, his staff or his equipment.
What kind of insurance policy do I need to start a construction business?
Most states require some form of contractors liability insurance for contractors to operate a business. It is also in the contractors best interest to have liability insurance to protect against any type of problems which may arise during construction. Liability insurance is also a marketing tool which many customers like to see when choosing a contractor.
Do you need liability insurance on your workers if they are on the prime contractors equipment?
Workers safety is of utmost importance since the contractor's job sites are often dangerous places and even though precautions and care is taken, there are still accidents that take place and cause losses to the business. For protection against these losses and to prevent excessive costs, a contractor holds Contractors Liability Insurance. In many jurisdictions it is also a legal requirement to hold liability insurance for employees, regardless of the nature of the work they undertake.
What is the best way to locate a dependable building contractor?
Find a dependable building contractor by polling your friends and acquaintances to see which contractors they have done business with and would recommend based on the success of their projects. Another area to check is the yellow pages under the appropriate category for the work that you need to have done. Some yellow page directories, such as Verizon, mark companies that are known to be of good quality. Finally, check with the Better Business Bureau to make sure that there are no claims against the contractor or contractors that you are considering. When you contact the contractors, make sure the contractor provides information about the company’s insurance coverage and completes a timely and thorough estimate of the project. Those contractors that do not complete these initial steps are not those that you should hire.
Are all siding contractors bonded against damage to your property?
All licensed contractors are required to be bonded against damage to your properrty and injuries. You should reasearch your contractor before allowing any work to begin to make sure it is current.
How can I identify reputable building contractors in the Phoenix area?
Find a dependable building contractor in the Phoenix area by talking with your friends to see which contractors they have done business with and would recommend based on the success of their projects. Another area to check is the yellow pages under the appropriate category for the work that you need to have done. Some yellow page directories, such as Verizon, mark companies that are known to be of good quality. Finally, check with the Better Business Bureau to make sure that there are no claims against the contractor or contractors that you are considering. When you contact the contractors, make sure the contractor provides information about the company’s insurance coverage and completes a timely and thorough estimate of the project. Those contractors that do not complete these initial steps are not those that you should hire.
What is recourse for homeowner whose insurance company paid contractor in full and contractor refuses to complete the job as agreed to with the insurance company?
Your contract with the tradesman is between "You and the Contractor", He did not contract with your insurance company. All the insurance company did is agree to pay the bill for you. So you would need to bring your own civil or criminal action against your contractor depending on the circumstances.
How do you deal with a contractor if they inflate prices on your bill for repairing your home because insurance money is involved?
I would first call your insurance company and make them aware of your suspicion. Ask them to make another inspection to protect yours and the companies interest. You might then call a consumer hot line in your state if there is a fraud section for contractors. I would file a complaint against the contractor with the state and tell them what you said here.
Can I accept property money damages from both my contractor's insurance co and my homeowners insurance?
No!! It is highly illegal for you to do this. When you make a claim on you home insurance for something that was the fault of your contractor you sign over all subjugation rights against this contractor to your insurance company. This means that if your home insurance pays any part of this claim you give them all your rights to go after the contractor, which they will do. They will go to the contractor and their insurance company to get reimbursed for any amount they paid plus costs. In most states it is considered insurance fraud for you to even try to collect damages from two places for the same claim.
Do you have to have a general contractor to get overhead and profit from the insurance company?
No, there are plenty of laws and regulations that address overhead and profit. Contractors charge it and insurance companies pay it. That's the nature of the beast. The insurance company that doesn't pay it is not only an exception to the rule but runs the risk of breach of contract and bad faith lawsuits as well as sanctions by insurance departments. There has been much litigation against insurance companies that mess around with overhead and profit, including several class action lawsuits against major insurance companies.
Are debris removal companies required to have insurance to protect against injury or damage to property?
All legitimate businesses have insurance to protect against injury and/or damage to property. Before engaging the service of any contractor, it is wise to make sure that the contractor is sufficiently insured.
Can you sue your own homeowners insurance if they don't repair your house properly after a water leak?
Your insurer paid the bill presented by your chosen contractor who made the repairs you requested. That was all they were required to do. So, you could probably sue, but you probably could not win. If your repairs were performed substandard, your claim is against the contractor who did the shoddy work or your contractors insurer, not the insurance company who already paid the bill. The insurer is not responsible for the quality of contractor an insured hires nor are they liable for the poor quality of that contractors work. The insurer can not be made to pay twice for the same repairs. This is why it's important that you hire a reputable contractor and verify they are adequately licensed and insured (get a copy) before allowing any work to begin on your home.
