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Category: Bonds

Contractor’s Bond and General Liability Insurance Pitfalls

General liability insurance is quite important to protect your workers, property, and other valuables. But there are many contractors’ general liability insurance and California contractor license bond pitfalls which are not covered by insurance companies. You can’t claim any amount if it is not mentioned regarding insurance. Therefore, it’s essential to be aware of these pitfalls as you won’t get anything from the insurance company under certain circumstances.

Let’s look at some important aspects contractors’ surety bond and  liability insurance

• Are you working with licensed contractors?
Before hiring any contractor make sure that the person has the license. If your contractor does not possess the license, then you can’t claim an amount from the insurance company in case of any crimes or dishonesty. Make sure to verify whether the people working with you are covered by a licensed firm.

• Does the insurance terms are applicable for your whole period of construction?

Some policies are made according to the period. For example, if you get agreed with an insurance policy for three weeks then it will protect you for three weeks only. You will be required to complete the construction within the same period. If your policy expires and anything wrong happens to your property or workers, then you are liable to pay all the charges, not the insurance company.

• Do the insurance policy cover injuries, construction property, and theft?

Construction sites are very dangerous as different tools and equipment are used. These tools may injure anyone passing through that region. If your policy has no rule regarding the injury to the third party, then it is another contractor’s general liability insurance pitfall according to which you will be liable to pay the medical and traveling expenses of the injured person.

Also, check whether there is a liability for theft, or not. Normally at construction sites, we can observe many tools and machinery lying here and there. There are some other valuables as well, therefore make sure in case of theft the insurance company is liable to pay you the amount.

Some policies do not cover the property and asset damage. So don’t forget to verify if this factor is present or not.

• Is the contractors’ liability insurance cover the higher risks?
There is a limit to the risks of a contractor by an insurance or surety bond company. If you are working at higher risks, then you need to know whether your insurance company will provide you the claimed amount if there are any critical and serious cases. If not, then you will be liable to meet that expense.


These were some contractors’ general liability insurance pitfalls which can be very disadvantageous for you. These conditions will make you liable to pay the charges on your own. That is why it is required before signing policy, read it and make sure that every condition is mentioned in it. So that if there is any crucial condition, then insurance company will not refuse to pay you the claimed amount.

Securing a Contractor Bond is an Investment in Your Business

Do you know what a contractor bond is all about? Did you know that securing a contractor bond is an investment in your business growth? Well securing a contractor bond places you in that perfect investment opportunity you wouldn’t dare miss. A contractor bond is simply a surety bond which serves a great purpose to the parties involved. The main purpose of this bond is to legally protect you as a contractor and other parties involved in the event of unethical issues. Apart from this, the contractor bond will also help you out in circumstances brought by costly decisions that may affect the business.

The parties protected by this kind of legal bond include:

  • The contractor
  • The company which is hiring your services
  • The agency issuing the state bond

Benefits of getting a contractor bond

  • Contractor bonding will protect the public since it binds you to fully provide services that do not cause any harm. By taking such initiatives, you will easily win the trust of the public with your services. Nothing will stop you from getting loyal customers that will directly influence your growth. Contractor bonding will make you more cautious about the upcoming market trends that you will ensure to protect the consumers.
  • In the event that a person is harmed due to unethical decisions, a case can be filed against the bond for compensation. You as a great investor wouldn’t want to go through this, why? This basically implies losses to your side. Take the bold step by investing in a contractor bond to be protected yourself from such setbacks
  • Getting this bond is an affirmation that your business will always uphold ethical standards and maintain professional services. This is a legally binding duty which is your responsibility to uphold. Through this, you will be able to create a name for your business and it won’t be long before you to rib from your investment.
  • Contractor bonding is a secure way of protecting your business from volatility and widespread mistrust that might arise in the course of your investment. In order for you to keep the other parties committed to the cause of your investment, then you will have secured a contractor bond. This should be able to protect you from taking full responsibility on irregularities that may have been committed by other parties


Be wise and grab this great opportunity by securing a contractor bond that will help secure your business investment. Do not risk your finances anymore to untrustworthy developers who will leave you in the middle of the way. Reach your business prime by taking advantages of the great opportunities a contractor bonding brings your way.