Contractors & General Liability Insurance

Today’s legal environment puts a premium on A-rated insurance coverage by carriers “admitted” by the State of California. This includes umbrella coverage. Air-Tro Inc’s policies deliver, giving you that peace of mind. You can see here, our proof of General Liability Insurance.

New Requirements for Contractors: Home Improvement Contractors & General Liability Insurance

Pursuant to California Business & Professions Code §7159.3 (SB 2029), home improvement contractors must provide this notice. And, they must disclose whether or not they carry commercial general liability insurance.

Did your contractor tell you whether he or she carries Commercial General Liability Insurance? Home improvement contractors are required by law to tell you whether or not they carry Commercial General Liability Insurance. This written statement must accompany the bid, if there is one, and the contract.

What does this insurance cover? This insurance can protect against third-party bodily injury and accidental property damage. It is not intended to cover the work the contractor performs.

Is this insurance required? No. But the Contractors State License Board strongly recommends that all contractors carry it. The Board cautions you to evaluate the risk to your family and property when you hire a contractor who is not insured. Ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily covered by insurance?

How can you make sure the contractor is insured? If insured, your contractor is required to provide you with the name and telephone number of the insurance company. Check with the insurance company to verify that the contractor’s insurance coverage will cover your project.

Self Insured Contractors

What about a contractor who is self-insured? A self-insured contractor has made a business decision to be personally responsible for losses that would ordinarily be covered by insurance. Before contracting with a self-insured contractor, you must ask yourself a question. If something went wrong, would this contractor be able to cover losses ordinarily covered by insurance?

For more information about Commercial General Liability Insurance, contact the Contractors State License Board at www.cslb.ca.gov or call 800-321-CSLB (2752).

It’s also important to make sure your contractor is licensed. Study a contractor’s insurance and licensing before you trust them with your HVAC investment.