General Contractor Insurance: 3 Tips For Choosing The Right Insurance Company

Are you a general contractor and you are searching for the right insurance company? You face different risks every day as a general contractor. You might be sued for poor workmanship or injure yourself when you are working. That is why it is important for you to choose the right general contractor’s insurance company.

The bad news is that most general contractors do not how to select the right insurance company. Know that is very easy to select the right company and you are going to learn all the top tips in this article.

Here are the top tips for choosing the right general contractor’s insurance company.

1: Licensingconstruction worker buying insurance

The first thing that you need to do is to check whether the insurance company you want to choose is licensed to work in your state or not. Use only the companies that are licensed in your state. These are the companies that will help you when you have a problem. Avoid those ones that have not been licensed to work in your state.

2: Price

Check the insurance policies and prices of the companies you want to use. It is important to get quotes from different insurance companies. The companies will provide you with different quotes, so you should use the ones that you can afford. Do not use the ones that are out of your price range.

3: Service

The insurance company you want to use should answer your questions quickly and it should handle your claims quickly, efficiently and fairly. How do you know this? Talk to the previous clients of the insurance company you want to use. These clients will tell you a lot about the company. You will know if the general contractor insurance’s company handles the claims quickly.

The insurance companies that you might want to avoid are those that have poor customer service. Focus only on the ones that have excellent customer service.

4: Comfort

Make sure that you are comfortable with your insurance purchase. There are some companies that might rush you to make a decision. You won’t feel comfortable with these companies. Ensure that you can contact the company easily when you have a problem or a question. The companies that are hard to communicate with are not the best. They won’t help you when you have a problem.

5: Experience

The best general contractor insurance companies are those that have been in this business for more than a decade. They have a proven track record and they are cheap. You will never have a problem with these companies. You should not focus on the insurance companies that were started recently.

These are the tops for finding the right general contractor insurance company. General contractors usually take a lot of time to select the right company. You do not have to waste your time anymore. Use the tips above to make the right decision. You can also ask someone to refer you to the best insurance company.

Guide For Making A Claim Under A Surety Bond

How do Claims work?

As a resident of Canada, you should understand that surety bonds are put in place to protect you! If you feel that your service provider has wronged you, it is a good idea to consider filing a complaint under the surety bond. This is undoubtedly one of the best ways to seek reimbursement from your losses. Of course, the process of making a claim is unknown to many individuals. Below, you’ll learn how to make the claim, so you can seek reimbursement, without delay.

Refer to the video below for an example on how payment bond claims work.. you will get an idea of how generally claims work.

How It Works

In order to get a better understanding of surety claims, you should learn precisely how this process works. When the obligee feels the need to file a claim, they’ll make contact with the surety bond company like They’ll provide the company with the information needed and the surety will begin conducting an investigation. At this point, the outcome will be out of the hands of both the obligee and the principal. The end result will depend on the surety, their investigation and their opinion.surety bonding claims

If they agree with the obligee, they’ll immediately reimburse this individual or company. Then, they’ll turn to the principal and try to recover their own losses.

Potential Conditions

Although it will ultimately depend on the specific bond in question, there will be a few potential conditions, which much be met before you can file your claim. Below, you’ll find a breakdown of the three most common.


  • The obligee will need to formally declare the principal to be in default according to the terms and conditions of the original contract.
  • The above information must be accurate and the principal must actually be in default.
  • The obligee should have fulfilled their requirements and commitments as set forth in the contract.


Surety’s Choices

Once the surety has acquired and confirmed the above information, they’ll need to make a choice in regards to the outcome. Generally, the surety will be able to choose between four courses of action. The four possible outcomes will be listed below.


  • Payout – In many situations, the surety will opt to pay the obligee to end the claim. With this solution, the obligee will receive the amount of the bond or the amount needed to complete the project.
  • Setup Completion – The surety may also decide to arrange for the project to be completed. In this type of situation, the surety will remove the principal from their duties and will replace them with a more capable company.
  • Remedy – Or, the surety may opt to try and remedy the situation. If this happens, they’ll mediate between both parties and will attempt to convince the obligee to drop their complaint, while forcing the principal to continue and complete the project.
  • Complete – The surety also has the right to take over the project. They can enter into a contract with the obligee and assume the contractor’s original responsibilities.


Documents To Submit

If you wish to file a bond claim, there will be an array of documents that you’ll need. First and foremost, you’ll need a copy of the contract, as well as copies of change orders and progress billings. Usually, you will also need to write down your complaints and submit the written argument along with the other documents.

claim form for insurance

When A Surety Will Not Respond To A Claim

As a customer, it is important for you to understand that there are certain cases in which a surety company may not approve your claim. For instance, if proper research has been done and there has been no factual evidence that the principal broke his or her agreement, the surety company will not grant your claim.

Another situation, in which a surety will respond to your claim, is if you are requesting the contractor to do certain work that he or she feels is not in scope of the contract, even though you may feel differently. This is oftentimes something that can be resolved between the principal and the obligee. If the two parties cannot solve the issue, then it can be taken into the court system.

Everything You Should Know About Renewing Your Surety Bond

How do Renewals Work?

If you’re a surety bondholder, you need to understand that you’re not out of the woods yet. The truth of the matter is that bondholders will need to perform a few tasks regularly, in order to maintain the validity of their surety bond. One thing that many bonded people fail to grasp is the fact that surety bonds will not last forever. The good news is that the renewal process is fairly simplistic and shouldn’t give you a lot of trouble. Below, you’ll learn more, so you can be prepared to renew right on time.

Do Surety Bonds Expire?

If this is your first time, applying for a surety bond, you are probably not familiar with many of the aspects revolving around these financial instruments. One of the many questions that contractors will ponder on is whether or not the surety bond expires. Well, they do expire and oftentimes the date of implementation is also the expiration date. This basically means that the agreement will expire 365 days from the day that the bond was put into effect.

What Is A Surety Bond Renewal?

A surety bond renewal is basically, just an extension of the existing surety bond that is already placed with a reputable surety company. All security bonds are only valid for a specific amount of time and have to be renewed annually or sometime thereafter.Bonding renewals

Unfortunately, before the renewal process can be completed, your company will have to undergo another evaluation. However, the good thing is that the principal will not have to sign another indemnity agreement and a new bond will not have to be issued. Instead, the existing bond can be extended for another given time period.

There are some cases in which the obligee may require a new bond, but this is not very common.

How Will You Know?

Some surety companies will make this process much easier on you. Others will require you to manage your own affairs. So, this will truly depend on the surety providers. However, you should know that there are some out there that will send you a notification in the mail. Others will do so through email. If you’re working with a provider, which forces you to do this on your own, you’ll want to put measures in place to remind yourself of the expiration date. This can be done fairly easily, by utilizing technology to your advantage.


Remember that surety bonds do expire and you will want to take action, before it is too late. Be prepared to renew your bond every year, as this is usually the duration.

Dont be late on renewal pic