Understanding Contractor General Liability Insurance

Insurance is Complicated

A work site is by its very nature often a dangerous place. Despite the best precautions and regulations set in place by individual businesses and governmental bodies, an unfinished construction project is still inherently problematic when it comes to worker’s safety. It is for precisely this reason that most states require contractor liability insurance for contractors working within those states.

Being insured is one of those first things that many entrepreneurs would have before starting up a business. Since business is all about uncertainties and contingent risks, therefore firsthand measures to cut short the impact of all the upset situations is always highly welcomed. Inevitably, every company wants to lay down specific safety and protective measures for both, itself and its employees alike. To do so, having general liability insurance from an experienced provider like gust – california contractors insurance is all that you need in the strictest sense. Indeed, none of the entrepreneurs would welcome a lawsuit filed against him or his company, and in that case, it is the insurance that plays a crucial role in protecting you from all sorts of charges or complaints.

Hire an Experience Broker

If you are a newbie in this regard, then it might take some severe deal for you to jot the best of all available companies in the market. However, your decision of choosing the right company solemnly depends upon the amount of background information you have collected right on the first go. Of course, doing your homework directly before you start to look for find a good deal contractors general liability insurance company will always be an added advantage. Though everyone has some or the other resources ready on their fingertips the question of dependability and reliability onto these resources is a matter of grave concern that cannot be overlooked anyway.

Here are some tips on how you should find the best deals available in the town.

Choose the right insurance company- it’s essential!

Well, this is first and the only place where people go for getting their business insurance stuff done. Since you have to make a call only once then make sure that you hit the right chord to avoid any hassles in the future. Of course, one should always make sure that he is dealing with a company that holds a license to operate under such a head. If the agent doesn’t have a specialization in the business, then it is advised to check out for a new and better option.

A background check of the company– makes sure the company isn’t poorly sound!

Well, you need to probe a bit deeper into the background history of the company to rest assured about its overall market experience and performance throughout. Surely, you cannot risk your company’s fate in the hands of some novice professionals. Think again if you are doing something that way!

All in all, it is never too difficult to find out the best agents or companies that offer contractors general liability insurance with a commitment to catering to all your needs for the same. Just a bit of research and homework shall fetch you the best of all purposes.

How to Know When You Should Remodel Your Kitchen



Remodeling projects are necessary to-dos as long as you’re living in a house. And of all the rooms, none is more deserving than the kitchen which sees the most work and carries the most value.
Remodeling can increase home value and is considered a prerequisite to most home resales. The cost of renovations will only increase as time passes, so it’s prudent to undertake it when necessary.

Remember: Only hire contractors who are licensed and carry and active CSLB bond.

Remodeling can also take place as often as you can afford. But, since most kitchen projects are a schedule one only if you’ve been noticing these signs:

Your power bills have climbed

The cost of electricity is increasing, but it’s a gradual rise. If your power bills seem to have alarmingly shot up despite maintaining moderate usage, outdated appliances could be to blame. When was the last time you upgraded them? Today, most electronics are Energy Star-rated, a standardization that determines how energy-friendly appliances are. If your last upgrade was a decade back, it’s safe to surmise that new standards would’ve been created by now in which case it’s high time to purchase a line of less power-hungry appliances.

There’s not enough storage space

Belongings will accumulate no matter how hard you try to discard junk. This means storage space becomes a problem and it’s time to rethink once-workable solutions. Larger cabinetry, built-in cabinetry, creating space in dead spaces, etc. are some of the things to try. Consult a remodeler who can plot and plan the best spaces for storage without marring aesthetics.

You’re considering selling the house

If the time has time to sell your home, you’ll need to look at things with a critical eye. Potential buyers want a trouble-free house, not one which needs repairs and renovations shortly. A new sink, resurfaced countertops and refurbished backsplashes are projects you can undertake if needed. A remodeler will examine everything carefully and let you know which other areas need work.

The work triangle is absent or difficult to work in

Every kitchen should have a work triangle which is nothing but a work zone comprising the cooking area, washing area, and refrigerator. Each station must be properly spaced, so they don’t feel cramped. Larger kitchens have the advantage of being able to accommodate larger stations, but there are clever ways to achieve great results with small spaces too. Speak to a remodeler who can give you options with the layout which directly affects how efficient a work triangle is.
There are damages

Some damages can be lived with, but structural, plumbing and electrical aspects must not be ignored. There are too many dangers, and the risk of worsening damage is high. Getting things fixed is one way to stop problems from compounding and prevent related ones from developing. Most damages are quite visible, but there are a few who need an expert eye to pick out. A remodeler can tell you where they’re likely to lie and the best fixes to apply.

Avoid taking on a remodeling project without professional help. You may not comply with building codes and may wind up spending a lot more than you estimated. A remodeler can be your best friend where renovations are concerned so seek help and expert advice. Research their Facebook Profile and other online resources to confirm they are a reputable company. You can also contact a local Surety carrier to confirm their bond is valid.


Do Small Home Renovations Contractors Need to Have a Construction Bond?

Construction bonds have been around for years and are mostly associated with large projects and undertakings. Many small home renovation contractors never consider bonds and this can keep them from successfully bidding bigger projects where bonds are very crucial. It is important to understand that there are various kinds of construction bonds available and while large construction establishments often have all of them, small businesses may need one or two. However, do they really need to have a construction bond to operate?

Legal requirements

Construction companies are required to have a construction bond to legally operate within their area. Different states have different legislation and requirements, but all will need bonds. A construction bond, also referred to as a construction surety bond, is a type of surety that guarantees your work to the owner. As aforesaid, there are different bonds available including;

  • Bid bonds – these are paid to bonding companies to give you an edge to bid on bonded jobs. The bonding company will pay performance and payment bond if you are awarded the contact.
  • Performance bond – this surety guarantees your work to the owner and the stipulations for performance quality are in the contract.
  • Payment bonds – this bond guarantees that you will release payment to laborers, suppliers and sub-contractors.
  • Maintenance bonds – you guarantee that you will offer post construction services as stipulated in the contract
  • Supply bonds – these bonds ensure the supplier holds their end of the bargain by delivering supplies as agreed.

If you are a small business dealing with renovations and small tasks, bonds may not seem all that important as most customers will be fine with quality guarantees and provisions to redo the task if initial attempts do not meet the agreed quality standards. However, this limits you from undertaking major renovation assignments. What’s more some owners simply won’t contract you without bonds.

Why you may need a bond

Bonds expand your available projects and make it possible to undertake various projects. A sample construction bond is $500,000-over-$1,000,000 bond lone. This means you can only take on projects up to $500,000. The $1,000,000 cap gives you a chance to take on two projects $500,000 each or four projects worth $250,000…. You can now see that bonds are very important for construction businesses especially if you hope to expand and serve a bigger market. They do not only improve your surety relationship, but also market you as a reliable construction business that can undertake a task to its completion.

When owners find out you have construction bonds, their fears are immediately scattered and they begin to trust you more. They can even recommend you to other clients once the construction is completed. Small renovation businesses can still handle assignments on high-end homes that cost millions of money so it is important to have construction bonds if you want to get such opportunities.

What Can Happen if Your Contractor isn’t Bonded and Insured

A surety bond assures the contractors, clients or investors that the contractor will perform the contract to completion, or if they fail their responsibility, the funds will be availed for another contractor to do the Job. Contractor bonds, therefore, protect against loss and poor artistry. Hiring unbounded contractors may come with several bottlenecks.  Let us discuss them below.

Unbonded Contractor

Unbonded contractors may signal a weakness in financial capability to perform their mandate to completion. This may mean that if the contractor is incapacitated to complete the job, the client suffers a financial loss and cannot be covered. It is also impossible for the investor to place a claim to any company for the loss incurred. Therefore, bonding indemnifies the owner of the project against such.  Here are some of the risks of hiring an unlicensed unbonded contractor.

Risk of Non Bonded Contractor

Secondly, non-bonded or uninsured contractors may pose the risk of poor performance of the contract. It is possible that uninsured contractor may not possess the requisite skills to do the job as stipulate in the terms and conditions of the contract. In other words, the investor stands to risk losing the whole project or receiving substandard service. If this happens, then the investor loses the right to have the work redone at the cost of an insurer. This is because your state contractor board will be reluctant in helping you make a warranty claim against an unbonded contractor. Even if you take the case to a civil court and win, there are chances that the contractor will not be able to pay.

Risk for Investors

As an investor, you risk being liable for payments owed by the contractor to the subcontractors in case they are not bonded. This is true if the non-bonded contractor refuses to pay the suppliers and subcontractors. This will mean that you will shoulder all the obligation to pay all the contractors and their associates all their dues. On the other hand, should an accident occur at your premises, you will completely be liable to pay for all the overhead costs that result from the same.
To avoid contract disputes, you will need a bonded contractor. In most cases, the contractor often disputes the completion percentage, or delay the project, which may lead to holding the part of payment resulting into a tussle.

In general, you are safe only with bonded contractors since you are secured from loss, poor workmanship and non-performance of the contractor. As an investor Always try to check for the right contractor to ensure that they are licensed, bonded and insured, this will go a long way to keeping your reputation.