In The Know: Don’t Forget About Business Insurance

It’s very important for contractors to ensure that their workers’ compensation and general liability insurance policies are up-to- date. However, most new licensees and veteran contractors fail to realize that the State’s insurance requirements for active licensees are always in effect regardless of whether they are currently engaged in projects.

Since there are so many requirements and forms to follow when it comes to operating as a licensed contractor, it can be easy for new applicants to overlook the insurance requirements. A 30-day grace period is provided for new licensees to obtain either an exemption or a worker’s comp insurance policy.

The minimum coverage requirements for general liability insurance are now in effect. Even if you don’t expect to start working immediately, it’s important that you have the proper coverage to avoid potential penalties and fines.

Another common mistake that contractors make is not following the proper steps to either activate their license or relocate to a new location. They may have stopped working and then moved to a different company, but they didn’t take the necessary steps to either inactivate or relocate. If they fail to do so, their license will still remain active until they voluntarily put it into inactive status. This means that they are still legally obligated to carry out their duties.

Although contractors are aware that they have to carry out permits, they should still ensure that they have the proper insurance coverage to avoid getting fined or penalized. If their license won’t be used for a long time, they should place it in inactive status.

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.