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If you hire a contractor without insurance, you are putting your whole world at risk. Cheap contractors aren't paying for insurance and if something goes wrong, you could find yourself in court facing serious issues.

Tips on Insurance:

What is General Liability?

General liability provides protection against two types of financial loss arising out of a lawsuit against the company. First, it covers damages awarded to a third party because of injury or damage for which the insured is legally responsible, including loss of use of property claims. In addition, it covers the cost of defending the insured against the charges alleged in the suit, including attorney fees, investigation costs, and other legal expenses.

What is an additional insured?

Construction contracts frequently require contractors to add other parties to their liability policies as additional insureds. It is a second layer of protection for the contractual indemnity agreement. Additional insured can submit claims directly to the insurer without first filing a claim against the named insured.

What do I do if I have a claim?

If a claim occurs immediately contact your agent or broker. They will then ask you a series of questions regarding the claim. Try to gather as much information as you can.

What is a hold harmless agreement?

In a hold harmless agreement, one party (the indemnitor) promises to reimburse, and in some cases defend, the other party (the indemnitee) against claims or suits brought against the indemnities by a third party. The purpose of the hold harmless is to transfer the risk of financial loss from one party (the indemnities) to another party (the indemnitor).

If I am a sole proprietor, do I need worker's compensation?

Worker's Compensation is not required if you have no employees. You can exclude yourself from Worker's Compensation by obtaining a waiver of Subrogation.

Are employees covered under personal injury in a general liability policy?

Employees have no coverage with respect to injuries sustained by the named insured, its partners or members, or to another employee or volunteer.

What is a Certificate of Insurance?

A Certificate of Insurance is a document which shows the insured's name, liability limits, effective dates of the policy and also the brokers name and address. This form is often requested from clients in order to show proof to insurance or from villages or towns in order to full permits.

What is Workers Compensation?

Workers Compensation insurance provides certain payments to an employee who suffers an on the job injury due to an accident or occupational discase.
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Policies

Cahoon Construction's Commercial Bonding and Insurance:

Construction surety bonds are guarantees which are usually required by the project owner/s or officer/s "the obligee" on large projects in order for a construction company to bid on projects and/or be allowed to proceed on a project awarded to them. Basically there are three main types of surety bonds used in the construction industry which are the bid bond, payment bond, and performance bond. Payment and performance bonds are only required if the bidding construction company wins the bid and is awarded the project contract.

A "bid bond" guarantees the obligee that the construction company will honor its bid and it is usually required to be presented to the obligee by the construction company before the bid takes place, otherwise the construction company may not be allowed to bid.

A "payment bond" guarantees that all sub-contractors and suppliers receive payment of the products and services produced by them on the construction project, which was requested or authorized by the contracted construction company.

A "performance bond" guarantees the obligee that the construction company will complete the contract according to its terms including price and time.

Making Insurance Simple

Before you have a contractor start on your project, make sure you know how handling of claims related issues with the contractor's insurance carrier. You can do this by phoning their carrier and taking to a claims representative.

Know that typically, insurance company's come on jobsites for daily, weekly and monthly inspections & reporting. If a contractor is careless with the way they organize their job site, a carrier will give them a notice to cure and even cancel their coverage. If your contractor's jobsite is messy and unsafe, then chances are, if something goes wrong, there will be no insurance company to contact for compensation.

Managing documentation requirements Workmanship Guarantee:

The workmanship guarantee is the most important part of signing a contractor. Well worded workmanship guarantee's are a good sign that you are dealing with a reputable contractor.

Cahoon Construction is a fully bonded and insured and licensed New York State General Contractor.