If you’ve even gone through a new home build, you already know how important contractor insurance is for any project. Although this post is about how contractor insurance protects California contractor, the same principles apply to any construction project that’s complex enough to require the hiring of contractors.
Many people believe that construction is an easy job, and that it mainly consists of brute force. But the truth is, construction is anything but easy and that’s why you must complete training for a contractor’s license before go to work in this field.
To become a contractor, you must undergo specialized vocational training. Fortunately, there are many schools around that offer construction training. Most of them are under the jurisdiction of the California Contractors State License Board. Of course, at the end of the training you must undergo an examination to receive your certification. Then, after you receive your certification, it’s time to purchase your licensing bond.
Why Every Contractor Must Have Bond Insurance
You might find that in some other states, the requirements are different for contractor training or construction work. However, most states require that all contractors have a license and bond insurance before operating on a project.
Contractor Bond Insurance Requirements
In addition to the vocational training, the bond is also a requirement. This is especially true if you work on a government project. In fact, most businesses refuse to work with contractors who do not carry bond insurance.
Of course, not having a bond is the death of a contractor’s career. If you successfully build anything without it, it spells trouble for you if the local authorities or inspectors discover it.
However, there is still confusion around the bond, especially here in California. But putting it in other words, one can think of it as an insurance for California Contractors.
It protects all the parties working on this project, no matter their reason for involvement. Therefore, this bond is not only for the contractor’s protection but for everyone with stakes in this project.
It Benefits Everyone on the Project
For example, imagine that you spearhead a project like a central office or company building. It’s your responsibility to coordinate the project for the smoothest construction possible.
However, if there are injuries or structural damage due to your work, you are liable for those events. As the bond states, it protects the investor’s involvement in the project, which includes the funding.
When you say this way, it sounds like a disadvantage for contractors. However, you must understand that this bond is a form of assurance that you do your utmost for every job.
If you think about it, the bond has some advantages as well. As a contractor, it assures you that you are following the rules and regulations set by the government. As long as you follow them, your chances are less that you are held liable for any error. But, that’s why contractors must carry insurance because accidents happen and mistakes are made.
Keeping Your Good Reputation Intact
The bond is also helpful in keeping your good reputation as a contractor. Since it makes you a reliable investment, more businesses will approach you. In fact, with the insurance, you can use this as leverage for closing business deals that would otherwise be impossible.
If you have any questions, please leave them in the comments below. You will also find links below that take you to more interesting articles about all things design for your home and business.
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