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liability insurance requirements

Posted By: mj

liability insurance requirements - 03/31/05 04:29 AM

Does the AHJ require proof of liability insurance for licensed electrical contractors in your area ? if so ,want is the minimum amount of coverage required ? Presently,liability insurance is not required in my area, the board is considering a $500,000 minimum proof of insurance before any permits are issuesd. The only type insurance required now is a $5,000 preformance bond for to correct code violations .
Posted By: Steve Miller

Re: liability insurance requirements - 03/31/05 11:24 AM

In my home state (MD) we are not required to carry any insurance if you operate on a journeyman license. As soon as you pass the masters test and apply for the masters license you need to carry (I think) $500k liability. I say "I think" because it only cost me $350 yr for $1M and I carry that ($500k would cost me $300). The counties won't even issue the masters without proof of insurance and the state won't issue a statewide license until you have (at least) one county license (your base/home county).
FYI: even if I do no contracting and only have the masters to work for someone else I still need the insurance to get the masters.
Posted By: Electric Ian

Re: liability insurance requirements - 03/31/05 01:12 PM

MA - proof of liability insurance required (1M, I believe) before an electrical permit will be issued.
Exceptions are:
1. Permit issued to home owner for work on his/her own house (single family)
2. If home owner signs waiver
Posted By: DougW

Re: liability insurance requirements - 03/31/05 05:28 PM

North Chicago only requires $100k - $300k each for property damage and liability to get your license, but since many communities to the south (over the "green ($$$) line" ) require $500k- $1M, I got $1M/$2M for about $150 more/year.

Some communities require copies of insurance covereage from your agent, some just make a xerox of your license.

[This message has been edited by DougW (edited 03-31-2005).]
Posted By: luckyshadow

Re: liability insurance requirements - 04/01/05 02:29 AM

Here in Maryland we are required to have 100K / 300K this is for property then liability. You only need this if your master's license is active. You can hold a Master's with no coverage as long as it is inactive. (No sense paying for insurance if the license is inactive)
Posted By: BobH

Re: liability insurance requirements - 04/01/05 02:34 AM

Most all the towns and cities around here require 300,000 minimum to get licensed and require insurance co. to list their name on the form. I wouldn't think about doing electrical or any type of contracting without insurance in todays sue-happy society, especially as a dba, in any town.
Posted By: BobH

Re: liability insurance requirements - 04/01/05 02:35 AM

Oh sorry. Upsate N.Y here.
Posted By: Electric Eagle

Re: liability insurance requirements - 04/01/05 03:11 AM

I don't know of any areas requiring insurance other than one jurisdiction requiring a code compliance bond. However I couldn't imagine doing this tye of work without at least a $1,000,000 liability policy. Most GC's won't hire you without liability and workmans comp also.
Posted By: BobH

Re: liability insurance requirements - 04/01/05 11:42 PM

Could someone explain exactly what a code compliance bond is? Not many areas around here require bonding so I'm not really familar. Thanks.
Posted By: Electric Eagle

Re: liability insurance requirements - 04/02/05 03:01 AM

Bob H, in our area a code compliance bond is something they make you buy for $100 a year to cover the a$$ of the AHJ. I've never heard of one being claimed on, but it is suposed to pay to correct code violations found years later. It's really a joke.
Posted By: e57

Re: liability insurance requirements - 04/02/05 07:14 AM

California liability may be (often) required by contract, but workmans comp required by law.

[This message has been edited by e57 (edited 04-02-2005).]
Posted By: northstar

Re: liability insurance requirements - 04/02/05 10:57 PM

Long Island N.Y. requires you to have liability Ins. for owning a wire nut. 1,000,000 to 3,000,000 minimum.
Posted By: nesparky

Re: liability insurance requirements - 04/05/05 10:14 PM

In Nebraska the state requires a 500,000 liability but almost every one carries 1-2 Million. Almost all contracts require that much. Most all local jurisdictions also require a performance bond in an ammount from 100,000 to 125,000. This bond is for those who will not or do not fix the inspectors write ups in a reasonable time. If necessary the city will get some one else to fix it and charge it to the bonding company. Then the go after thelicense of the permit holder. And the bonding company goes after the defaulter.
It is a way of making sure the write ups will be fixed. After all if you do not like the price you have to pay for not doing work up to code, you will realy hate the price you have to pay for some else to fix it, and the loss of license and the bonding companies fees and lawyers fees you will have to pay via court judgement.
It makes sure that what AHJ wrote up is fixed.
The AHJ will not iissue you permits if no bond is on file. Bonds typically cost 1% of face value eg 125,000 cost 125/yr.
We also have local jurisdictions that require the city to be listed as an also insured on your company insurance.
Posted By: pauluk

Re: liability insurance requirements - 04/05/05 10:24 PM

No such thing as a licensed electrical contractor in the U.K., and no insurance requirements at all.
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