requirement for liability insurance come from state regulators or from GC ?

[PowerLimited]

At what point in the typical progression into contracting work is a contractor asked/required to show proof of liability insurance ? And 'bonded' coverage ? Thanks.

 

[kwired]

At what point in the typical progression into contracting work is a contractor asked/required to show proof of liability insurance ? And 'bonded' coverage ? Thanks.

States, cities, or other AHJ's may have different rules, but many will require active contractors to carry a minimum amount of liability. One simple way of doing this (which is done here) is you must have a current certificate of insurance on file with minimum required coverages noted on it when you pull permits or they will not issue you a permit.

Owners or GC's can pretty much ask you for proof of liability anytime they want, and can ask you to have more than any legally required coverage levels if they want. If you don't comply they don't have to hire you. It is in their best interest to protect their investment by hiring insured contractors.

 

[infinity]

Here in NJ the State requires liability insurance and workman's compensation insurance if you're a corporation. As KW stated it can vary from state to state. GC's and building owners usually have their own requirements that may exceed that of the State.

 

[Rewire]

liability and work comp is often a requirment for licensure. Most GCs will ask for it from subs. It is probably something a business should get for its own protection.