Mindblown: a blog about philosophy.
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Mandatory Workers’ Compensation Insurance for Contractors in California
The California Contractors State License Board (CSLB) has announced that starting January 1, 2023, certain licensed contractors must carry workers’ compensation insurance, regardless of whether they have employees. These contractors include those in the concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) sectors. This new requirement is the result of Senate Bill…
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Loss Exposure of Contractors
Contractors are subject to some unique loss exposures. When a prospective client needs certain types of construction work done, contractors either bid for the job or negotiate a contract. Due to this, the customer specifies what should be done in the job specification. It is common for contracting businesses to have multiple locations. There are…
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Insurance Loss Runs: How Do They Work?
An insurance loss run is a report that lists all claims made on a particular insurance policy over a specified period of time. Loss runs are typically requested by insurance underwriters when evaluating an insurance application or renewal, and they can also be used by policyholders to help identify trends or potential issues with their…
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Insurance Premium Audit
Your insurer conducts a premium audit to become sure you have paid the proper premiums over the period of the policy for the insurance coverage you need. By analyzing your company’s financial records, an insurance premium audit determines your actual risk exposure. Every year, your insurance company conducts an audit of your policy. Typically, when…
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Sunset Clause aka Sunset Provision
A sunset clause on a liability policy is an endorsement that limits the coverage provided by the policy to a specific period of time, and can limit the reporting period of a claim. This means that if a policyholder is insured under a policy with a sunset clause and a claim is made for a…
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State and Subdivision Permit Endorsement
A state and subdivision permit endorsement is a type of endorsement that can be added to an insurance policy to provide coverage for certain permits and licenses that are required by state and local governments. These permits and licenses can include building permits, zoning permits, and other types of approvals that are required for construction…
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Insurance Categories
Abandoned Construction Project Abandoned Property Abandonment Insurance Abuse and Molestation Insurance Accident Insurance Accident- Occupational Accident Insurance Accidental Death & Dismemberment Insurance Accidental Death and Dismemberment Insurance AD&D Accounts Receivable Insurance Acid and Chemical Damage Insurance Adult Day Care Facilities Insurance Advertising Sign Companies – outdoor Aerosol Containers – filling or charging for others…
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The Contractor’s Bond has been increased to $25,000 by the CSLB
According to the press release issued by CSLB on September 30,2022, as of January 1, 2023, the Contractors State License Board (CSLB) will require a $25,000 bond from all contractors. This increase was first announced by CSLB in December 2021. Senate Bill 607, signed into law in 2021, led to the increase. Bonds for…
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The Use of Insurance as a Risk Management Tool
The goal of risk management is to identify, analyze, and manage loss exposure so that an organization can achieve its goals. The use of insurance is just one method that organizations use as part of their general risk management strategies. Using insurance, an organization or individual is able to transfer the financial consequences of a…
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Commercial Insurance Versus Personal Insurance
Commercial insurance covers businesses (for profit) and nonprofit organizations, whereas individuals and families buy personal insurance to cover non-business insurance needs. Insurance for the property and liability of a restaurant falls under commercial insurance, while homeowner insurance covers the house and personal liability falls under personal insurance. To liability and property insurers, the difference…
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