Insurance Information for Building a Contracting Business – Insurance Business News

It is crucial to study your local laws and make sure that your business is in compliance. If you do not have sufficient insurance, you could face massive fines and penalties.
Commercial Licenses and Surety Bonds

Many states require that contractors have licenses or permit bonds in order to guarantee that they can provide the required services. The permit bond is legally binding contract that guarantees the contractor pays for all supplies and labor required to complete the work and will not charge the client a cost. To safeguard their financial interests when negotiating contracts, many cities and towns will require an obligation to pay and performance bonds. It is often required by private firms to determine the amount of investment. This means that the company is financially sound enough to be able to finish the project.

Commercial Auto Insurance

Vehicles are used by businesses to transport goods, personnel as well as equipment, tools and other items on their worksite. Commercial auto insurance is an essential requirement when you establish a contracting firm that has or lease cars registered under its name. Commercial auto insurance will cover any third-party injury or property damages that could result from an employee driving the business vehicle. Commercial auto insurance protects the value of your vehicle in case of a collision or another threat, such as fall or theft. Independent contractors like garage door contractors or local roofing contractors should take out commercial auto insurance prior commencing operations since it protects the vehicles or trucks used to transport doors and roofing components to the installation site.

Inland Marine Insurance

Are you considering starting your own business and building an HVAC contractor firm? Your business’s assets are covered by an insurance policy for inland marine. It protects you in case your company isn’t permanently based in one spot.