Contractors Insurance in Georgia
Contractors and subcontractors operating in Georgia are not as regulated as they are in many other states. According to the Secretary of State’s office and the Georgia Board of Residential Contractors, only residential and commercial contractors are required to obtain a license from the state. According to the rules posted by Georgia’s Secretary of State, the following kinds of work projects will require a license:
- Residential-Basic Contractor (contractor work relative to detached one-family and two-family residences and one-family townhouses not over three stories in height)
- Residential-Light Commercial Contractor (same as residential-basic, and additionally, such contractor work or activity related to multifamily and multiuse light commercial buildings and structures)
- General Contractor (contractor services unlimited as to type of work contracted for, undertaken to perform, bid or proposed upon or otherwise offered to perform, and performed as a contractor, except any work which falls under the licensing requirements of Chapter 14 of this title, which may not be performed by the general contractor unless he or she possess licensure to do such)
- General Contractor Limited Tier (contractor services unlimited as to type of work contracted for, undertaken to perform, bid or proposed upon or otherwise offered to perform, and performed as a contractor, except any work which falls under the licensing requirements of Chapter 14 of this title, which may not be performed by the general contractor unless he or she possess licensure to do such). This license is limited to contract amounts of $500,000 or less. Certain specialty trades or work costing less than $2,500 does not require the services of a state licensed contractor.
State of Georgia Insurance Requirements for Residential and Commercial Contractors:
Protect Your Business with Contractors Insurance from Fairbanks Insurance
Although the State of Georgia appears to be rather lenient when it comes to licensing contractors and subcontractors, your business will always be exposed to certain risks that could eventually result in a legal action and have a substantial impact on the future of your company.
Here is What We Recommend:
General Liability
General Liability
Your contractors general liability policy lays the foundation for well-planned business insurance
portfolio. Your general liability will cover your business for various different contractor’s risks:
- Business liability resulting from claims for bodily injury or property damage from third parties.
- Contractual Liability – often times contractors enter in contractual agreements with other contractors and must indemnify their business
- Products Completed Operations – If your business manufactures of installs products for
customers, you could be held liable for actions that result from products and their installation. - Legal Costs – Every legal action filed against your company must be responded to and defended. Here is where your general liability insurance is invaluable.
Workers' Comp
Workers' Comp
Arizona is considered an NCCI State when it comes to workers’ compensation. This means that classes and rates are set by the National Council on Compensation Insurance. The state of Arizona requires all contractors with at least one employee to carry workers’ compensation and enforces substantial fines for businesses who neglect this rule. Your workers’ compensation protects your business and your employees. Employees are covered for injuries and illnesses that are work related and cannot file claims against their employer if a workers’ compensation policy is in force.
Commercial Auto
Commercial Auto
Arizona contractors that use vehicles for commercial purposes should only depend on commercial auto insurance to cover their liability for injuries or property damage and repair or replace their vehicles in the event of an accident or theft. Contractors that rely on personal auto insurance will likely find that coverage will not be available if the vehicle is regularly used for commercial purposes.
Tool Coverage
Tool Coverage
Your tools and equipment are not covered under your business property or commercial auto policy
while in transport, in storage, or at the jobsite. Fairbanks Insurance Brokers provides affordable toll and equipment coverage using Inland Marine Insurance coverage.
Surety Bonds
Surety Bonds
Like the state of Arizona, most states require contractors to post a surety bond protecting the state before a license will be issued. Also, many large customers and government agencies will require a bid bond before they will even review your company’s bid for a project.
Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.
With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.