IF YOU’RE ACTIVE, KEEP IT COVERED

It’s no secret to contractors that when you’re on a jobsite, it’s extremely important to ensure that your general liability and worker’s compensation insurances are sufficient and up-to-date.  But, one thing that is often overlooked by new licensees, or even veteran contractors who are not actively engaged on projects, is that the State’s insurance coverage requirements are always in effect for active licensee. This requirement is regardless of whether he or she has any ongoing projects.

For new licensees, there are so many forms, fees and requirements to keep track of, that it can be easy to overlook insurance initially. There is a 30-day grace period from the date your license is issued to obtain either Worker’s Comp insurance or an exemption (if you have no employees an exemption will suffice).  For General Liability coverage, the minimum coverage requirement is in effect immediately.  Even if you do not anticipate performing any work immediately, making sure that you are properly covered will go a long way to avoid any unnecessary fines and penalties.

Another common way that contractors end up out of compliance is that they may have ceased to operate their company or moved to another place of employment, but have not taken the proper steps to either inactivate the license or move to the new entity.  It’s important to note that if you stop working, your license remains active until you’ve voluntarily placed it to INACTIVE status.  This means that you are still responsible for being properly insured as long as the license remains ACTIVE.

All contractors know that insurance is required to pull permits, but be sure to stay in compliance by being covered immediately, or placing that license into inactive status if it won’t be used for an extended period.

If you have any questions about minimum requirements, worker’s compensation exemptions, or if you need an insurance referral, contact the team at Licenses, Etc. by clicking here or call 239-777-1028.