What type of insurance is typically required for a contractor to obtain a certificate to work?
General liability insurance is essential for contractors as it protects against claims of bodily injury, property damage, and related liabilities that might arise during their work. Homeowner’s, travel, and life insurance are unrelated to contractor work.
Which of the following covers medical expenses for injuries sustained by a contractor's employees on the job site?
Worker’s compensation insurance covers medical expenses, lost wages, and rehabilitation costs for employees who get injured while on the job. General liability covers third-party injuries, professional liability covers errors in services, and auto insurance covers vehicle-related incidents.
Which entity typically requires proof of insurance from a contractor before issuing a license or certificate?
State licensing boards generally require proof of insurance, particularly general liability and worker’s compensation, before they issue a contractor's license or certificate. Clients may request it as part of a contract, but licensing boards mandate it as part of the regulatory process.
Which of the following would NOT be covered by a contractor's general liability insurance?
General liability insurance typically covers third-party property damage and bodily injury but does not cover claims related to poor workmanship. For this, a contractor might need professional liability or errors and omissions (E&O) insurance.
How often does a contractor typically need to renew their insurance to keep their certificate valid?
Most contractor insurance policies, including general liability and worker’s compensation, are renewed annually. Contractors need to maintain current insurance to keep their certificate or license valid, as most authorities require proof of ongoing coverage.