When you are engaged in a construction you will definitely need to hire a contractor. One of the most important things to do is to check their credentials in relation to the companies in question and especially the insurance cover just to mention but a few. The validity of the same has to count given that this is someone you are going to entrust with a lot of responsibilities and resources. One of the most vital things is the history of the contractor. Does he have a criminal past or are there any legal disputes he was involved in that are pending. These are some of the key areas you need to be aware of might you need to hire a contractor.
Kindly request for the contractor to present his insurance certificate and thereafter confirm with the agency registered whether it is valid. It is good to engage the agents and pry just a little bit in a bid to get the most information as you possibly can. It is more like wringing information out of a person, figuratively speaking. When doing your background checks and probably trying to be an FBI agent, part of the things you may need to look into is the liability insurance. In whatever field there are risks involved and generally it is better to be safe than sorry. The general contractor is obligated to carry a contractor’s insurance and is charged with the responsibility of looking into the well being of his employees. When we look at well being the compensation policies are the ones shouting loudest.
The risk coverage for contractors is on annual basis meaning that the minimal coverage is one year, this is from the commencement of construction. It is however subject to renewal.
The Insurance Services Office’s (ISO) have clearly spelt out rules for contractors. This is that the policy inception is mandated to begin the date construction begins. The rules stipulated allow for cancellation on completion of the construction. Be it that the insurance on the completed structure is not rewritten or is rewritten.
There are certain coverages that builders may not be eligible to when occupied. Such exposures include dwellings, rooming houses, boarding houses and farm properties. Moreover the amount of coverage depends on the value provided at the onset to the outset of construction.
Covered property extends to building structures as well as the foundations laid down in place. The expiry of the insurance or rather the day it ceases, is considered to be the time the houses become occupied. The risks are then considered to cease. Building materials , fixtures, supplies and equipment are also part of the broad coverage.
The general liabilty policies cover damage to the property in question. However it only covers a third party property damage. This means not the property in question but if another is damaged by the contractor’s company. Employee injuries, on first sight it can be misinterprted to meant they will cover the employee. No, the injuries covered are those caused by your employees. All these are important for contractors to note about insurance.