Contractor Liability Insurance

Contractor Liability Insurance

For a very long time, contractors have been left in the wild when it came of matters of insurance. But thanks to the new Contractor Liability Insurance, contractors too can enjoy insurance services specially designed for them. Here below is an overlook of this type of insurance.

What is Contractor Liability Insurance?

This is a type of insurance that protects a contractor from any loses that may occur during his/her course of work. There are many dangers in relation to this profession that only need an insurance company to take care of.

Reasons for Contractor Liability Insurance

There are many reasons that have necessitated the need to have this kind of insurance. The reasons benefit both the contractor and the client involved with a contractor. Some of the reasons are mentioned below here.

The contractor liability insurance helps a contractor to get several permits for execution of his work. There are some permits that require applicants to have liability insurance and therefore only contractors with this type of insurance will benefit from it fully.

Another benefit of having contractor liability insurance is that it helps you get more contracts. Many clients prefer to hire contractors who are insured to work for them. Therefore, you get an upper hand over some contracts if you have this insurance.

A benefit of Contractor Liability Insurance to the client is that he/she is assured of quality service and in the event of property damage; there is compensation without having to go to courts. This is why many clients prefer contractors who have their liability insurances.

A contractor who has a company and has employed staff to work for him/her stands to benefit from this insurance. Any accident of an employee is covered in the insurance and therefore no employee will sue such a contractor. And even if the contractor is sued, the insurance company will gladly take care of the compensation fee.

The quality of work by contractor who is insured is always better than the non-insured contractor. The confidence that an insured contractor has is what brings about the good quality of service.

Therefore, if you are a contractor and you have not yet insured your professional work, it is high time you do so because clients have resorted to use contractors with valid Contractor Liability Insurance to work for them.

Commercial Liability Insurance

Commercial Liability Insurance

Commercial liability insurance is a special type of insurance meant for covering liability related damages of a business. Insurance packages vary and some cover all of the damages while others only cover a part. Legal costs (arising from claims etc) may also be included.

Commercial liability insurers are required to pay all of the legal costs of a covered liability lawsuit. There are various covered liability claims including property damage, personal injury, etc. Furthermore, any other damages, other than punitive damages and the like, are covered under your liability insurance claim.

There are special classifications for various insurance coverage options, so one type of business might have a higher premium in comparison to another type of business. Even if both businesses had clean records, their insurance premiums would still not be equal.

The extent of coverage a business needs will depend upon the business and its activities, assigning it a risk degree.

Commercial insurance costs and the costs of possible claims can be cut down using many techniques.

You can take certain measures to cut down your insurance costs. Cooperate with your insurance provider and keep them informed about any and every incident or shortcoming which may make your company stand face to face with a lawsuit.

And you could certainly make use of some tips to cut down against cost of claims. Product quality must be of the highest standards. Company records must be clean and updated. Employee skills should be of a high level. Your insurer will be happy to guide you about ways of best utilizing your insurance.

Not getting a commercial liability insurance is a serious risk. It protects your business in unexpected circumstances. The importance of it for a business owner is no less than a car insurance for a driver.

We live in a very litigious society. Your business could be sued at anytime for a wide range of reasons. Imagine your company does heavy duty manufacturing: your employees use dangerous equipment that could potential kill them if misused or they are not paying attention on the job. Or a slippery, wet floor in your business office could result in a lawsuit. Furthermore, you could potentially be put out of business if you have no liability insurance coverage. You would have to pay all damages (which can be quite expensive) and the legal fees for any claim out of your company’s assets.

When obtaining commercial liability insurance, make sure the insurance provider is reliable and provides excellent customer service. Your business deserves the best. However, it is good to keep affordability in mind too.


Professional Insurance

what is professional liability insurance?

You might have heard of all sorts of insurance, from health, life, car, financial, and what not. They come in very handy in cases where untoward or unwanted events occur such as sickness, untimely death, damage to vehicle due to accident, business slow down among many others. But there is another kind of insurance directed specifically to various professionals called “Professional Liability Insurance”.

It is otherwise known as E&O insurance, or the errors and omissions insurance and is entirely different from a general liability insurance that offers only limited coverage. There are cases where claimants can make it appear that you have become negligent even though in reality you did not, it could cost you a big sum of money. What the professional liability insurance does is it protects you against a claim due to negligence in advising or performing a specific type of service.

Some of the most common professionals that can take benefit from this kind of insurance policy are teachers, nurses, contractors, consultants, web designers, and all other professions who are into giving advice or rendering professional services.

For example, a patient who felt like the care provided by the nurse is substandard or lacking and didn’t even like the services given may want to sue the nurse in question. For consultants, an advice deemed to be a bad one, especially if it causes great losses in terms of finances to a firm or an individual may bring the issue to court and demand for reimbursement.

Nothing is foolproof when it comes to human errors. And should you make any mistake that is seriously costly, having professional liability insurance should help cover the funding for the costs incurred if ever the litigation battle has been lost. So basically, it is also a way of securing yourself and your business’ future in terms of financial stability.

It contributes to peace of mind knowing that you are well covered for any possible litigation against you for any costly error that may occur while rendering professional services. Plus the fact that it is always better to be prepared than not with all the surprises that life has to offer.

Lastly, when choosing an insurance provider, make sure that you did get the chance to check out others so you can compare prices and their offerings. Paying a little extra for better coverage is always a smart move than compromising your insurance by settling with cheaper ones with non-solid provisions just to cut down on costs.


Tax Liability

Tax Liability

Tax is a common term used all over the world. The successful running of states and governments is due to the collection of tax. But in the effort to collect taxes, not everybody is loyal in paying. Most people would try to find their way out of avoiding or evading tax.

Most citizens are liable to certain amount as taxation. So what is tax liability? Well, in a bid to answer this question, we will look at its definition and the related terms.

What is Tax Liability?

This is the amount an individual, group or a company owes to taxing authority. It is also referred to as tax obligation. It is a binding legal obligation of every citizen to pay tax liability. Failure to pay may result to imprisonment as stipulated in the law.

How is Tax Liability Calculated?

The tax liability is calculated by a taxing authority. The calculation is open and every citizen can calculate his/her tax liability. All the taxable events are multiplied by the given tax rate to get the tax liability. Taxable events are the sources of money that are bound to be taxed. They include, having sales, receiving or issuing a payroll, earning taxable income etc. The law is very clear on taxable events and everyone is expected to pay taxes.

The Importance of Paying Tax Liability

For a smooth running of local and national affairs, citizens have to adhere to the taxation rules. The number one importance of paying tax liability is to become a responsible citizen. It is the duty of every citizen to pay tax liabilities so as to enjoy the services offered by the government.

One of the most important reasons for paying tax liability is to promote development in a country. The reason why America is a great nation is because the citizens are loyal in paying taxes. It becomes easy for the government to initiate developmental projects. Infrastructures such as roads, hospitals, schools etc, have been made possible by the contributions from the taxpayers.

Tax evasion is a criminal offense punishable by both local and federal laws. Therefore, by paying taxes, an individual avoids a possible arrest and prosecution.

Avoiding Tax

While evading tax is a criminal offense, tax avoidance is legal and every citizen can lay strategy to minimize his/her taxation. There are several financial strategies that can help an individual in avoiding tax. But the bottom line is that the strategies have to be within constricts of the law so as to avoid tax evasion.

Therefore, it is clear that tax liability should be paid by every citizen so as to avoid prosecution but mostly for promoting local and national development.

Limited Liability Companies

What Is A Limited Liability Company?

A lot of business people opt to form a limited liability company or LLC instead of sole proprietorship, partnership or corporation. There are many benefits of having an LLC but there are also disadvantages.

What is a limited liability company?

An LLC is a business structure that is similar to a partnership but it has a legal protection like a corporation when it comes to personal assets of the owners or members. Unlike a corporation, forming an LLC is very simple and needs few requirements only but it also requires a fee when filing the documents.

Although a limited liability company has flexible management structure, few types of businesses cannot become an LLC. These businesses include banks and insurance companies. Since it has no restriction as to how the company will be managed, the number of members has no restrictions too. Members can be an individual, corporation, foreign entity or even another LLC.

What are the requirements in forming an LLC?

The Articles of Organization is the basic document that the law requires to those people who want to establish an LLC. This document is also referred as certificate of formation or certificate of organization. It includes basic information of the limited liability company such as business name and names of the members and their addresses. The address of the registered member who is designated to receive future lawsuit is also required to be indicated in the document. There may be other requirements depending on the state where the business will be established. Filing this document has a fee. Filing fee depends on the state but it usually ranges from $100 to $800.

Some states require the company to publish a simple notice of intent in a local newspaper that will be published several times for weeks. After completing this notice, an affidavit of publication should be passed to the LLC filing office. Once the affidavit is passed, the LLC is now established.

Rules in choosing a name for the LLC

Just like the other companies, an LLC is not allowed to be named similar to other LLCs. This can be checked with the LLC filing office. The name should also have a designator like Limited Liability Company, Limited Company, and abbreviations such as LLC, L.L.C., and Ltd. Liability Co.

It is also not allowed to include words such as Bank, Insurance, Corporation or name of a city. The name should also not violate any company trademark. There may be other requirements depending on the state so it is best to ask the LLC filing office for specific requirements.

The LLC Operating Agreement

An LLC Operating Agreement is not required by law but it is better if the company has one. This document sets the rules within the company such as ownership, members’ rights and percentage interest, members’ voting power and how to handle profits and losses. This is the document that tells how the company is managed and can be used in future legal dealings of the limited liability company.


Zip-line Liability Waiver

Zip-line Liability Waiver

Even the busiest man in the word finds time for recreation. Recreation is a basic need that everybody needs to engage in. There are several forms of recreation depending on individuals. There are those who prefer smooth recreation and those who prefer daring recreations. Zip-lining is one of the daring recreational events. Being a daring and risky activity, tour companies offering it as a service are protected with what is known as Zip-line Liability Waiver.

Understanding Zip-line Liability Waiver

This is an agreement signed by participants of zip-lining activity waiving all the liabilities that may occur as a result of an accident during the sport. Therefore, the details of the agreement state that the company involved in offering this service shall not be held liable for any damages resulting from this activity.

Why tour Companies need Zip-line Liability Waiver

The risks involved in this activity are too high and therefore there is need to have a waiver that will protect the company against occurrence of an accident. Without this liability waiver, there could be many claims against tour companies that they could not handle. Therefore, all the tour companies must let their clients sign the zip-line liability waiver before starting on this activity.

The Content of Zip-line Liability Waiver

The participant has to acknowledge that zip-lining is a very dangerous activity. The risks involved by engaging in this sport are so high that they may even lead to death. By acknowledging this, the participant is free to participate in the sport.

The next part of the agreement requires the participant to acknowledge, on behalf of the minors participating, that it is a risky affair that may lead to severe injuries or even death. This is because the minors cannot get into a legal contract with the tour company.

The most important part of the agreement is where the participant exonerates the tour company from any liability that may occur during or after participation of this activity. This is the waiver of liability. By signing this, the participant is assumed to have full knowledge of the risks involved and is willing to take on the risks while exonerating the tour company from accidents or death that may occur.

Once the agreement is signed, not even the relatives will be able to claim anything from the tour company in case of an accident or death of a participant.

It is important to note that this is a just a legal procedure that has to be followed and that it does not necessarily mean that zip-lining is an extremely dangerous activity that should not be attempted. Very rare cases of accidents resulting from this sport have been reported.

Contractor Liability Waiver

Condominium and homeowner Declarations and Bylaws often dictate that the contractor be qualified by licensure and insured. State laws vary on licensing and mandatory insurance. The burden of compliance rests with the association’s Board of Directors.

While licensure is mandatory in many states, an association should always investigate the contractor through a background check. References are not the most reliable form of verification as the contractor will not readily volunteer people who will not give a good reference. The best references are from association trusted sources. Likewise, the management company, if present, may also volunteer contractor suggestions. The suggestion should be considered; however, the same reference background check needs to be completed as if the contractor was a non-referral contractor.

One of the most important aspects of the background check is verifying the general liability and workman compensation insurance policies of the contractor. A certification should be issued to the association by the insurance carrier and update each time that the contractor is used. Failure to receive the certification could open the Association to legal risks for accidents or property damage occurring on the association’s property.

The insured contractor’s overhead is higher and those costs are generally reflected in quoted estimates. There is always the temptation to find the lowest costs and to assume liability of a non-insured contractor. The Association should exercise extreme care if venturing down this road. What seems like a great deal upfront can quickly change to a catastrophic event.

In the event that the association does use a non-insured contractor, the Association should insure that the Condominium Master Insurance Policy will cover contractor related accidents or property damage that occur on the premises. The project scope for non-insured contractors should not include structural elements of the association. The Association should use a liability ­limiting contract with the contractor, whether insured or not, and they should always use liability waivers upon completion of the project.

Overall, the Association must use a risk vs. cost analogy in determining whether a project can be safely assigned to a non-insured provider. Part of the risk assessment is to insure that the association’s own policy provides the necessary coverage and that the association is following an established risk reduction program. The Association should not use any provider that is not insured with structural elements of the Association. Structural elements includes, but are not limited too, roofing, load bearing walls, exterior wall repairs, support joists and foundation work, electrical, plumbing, and HVAC services.

It is recommended that the association use commercially insured and licensed contractors for their repair needs and if the decision is made to use non­insured or “handy-men” workers are used, that those workers only perform non­structural work and that the risk reduction plan is observed.