What type of insurance should I require from a contractor?

What two types of insurance is the contractor required to purchase?

What Types of Insurance Should a Contractor Have?

  • Commercial General Liability Insurance. Commercial general liability is one of the most common types of insurance for contractors. …
  • Workers Compensation. …
  • Contractors Pollution Insurance. …
  • Automobile Liability Insurance. …
  • Builders Risk Insurance. …
  • Roofers Insurance.

What type of insurance coverage is traditionally used by contractors?

General liability insurance, commonly referred to as commercial general liability (CGL) insurance, is usually the first choice and most common type of insurance coverage that a contractor will seek out.

What should I require from a contractor?

Your contractor should provide you with some important documents that can help your project run smoothly

  • Contract Agreement. …
  • Construction Schedule. …
  • Scope of Work. …
  • Detailed Cost Estimates. …
  • Hard Cost Estimates. …
  • Soft Cost Estimates. …
  • Bonds and Insurance. …
  • Bond.

How much insurance should a contractor carry?

The cost of Alberta contractor insurance ranges anywhere between $300 and $1691 per year, which equates to about $25 to $140 a month. The price of your insurance may be more or less all depending on your line of work, where you operate, and how much coverage you have.

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Should you pay a contractor half up front?

A: It’s not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag. … I recommend tying payments to progress made during the job.

How much money should you give a contractor up front?

You shouldn’t pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.

How much money can a contractor ask for upfront?

Payment Schedule In Your Contract

Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn’t be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they’ve even stepped foot in their home.