As a contractor, you become the overseeing manager and coordinator for a project that you are hired for. You may hire sub-contractors and specialists to complete certain aspects of the project, but the overall responsibility to carry out the project as requested rests with you. This line of work takes extensive skill and experience, plus it also carries liability. Having contractor insurance in Alabama is essential to your reputation, success and ability to operate with your clients’ and your own interests protected.
If you are starting out as a contractor in the construction industry, you need to make sure you complete these critical steps before you take on your first contract.
- Obtain Certifications – There are three important certifications that contractors in the construction line can choose from, including: Certified Construction Manager, Associate Constructor or Certified Professional Constructor. Each has their own requirements and may take several weeks, months or years to complete.
- Get a License – To operate legally, you need a business license and a professional license. Your general business license gives you the right to operate in the state, but your contractor’s license gives you the authority to offer your trade services.
- Bonds – A construction business needs a bond to operate. A surety bond means that your client will be paid if you do not fulfill the obligations of the work. You should speak with a bond agent to find out what level of bond protection you need to carry based on your contract work and city.
- Permits – If you plan to operate as a contractor from your home instead of a physical office, you will need a home business permit for the city or county you are in.
Do Not Forget Contractor Insurance!
The most important step in starting your business is obtaining contractor insurance in Alabama. Whether you employ workers or hire subcontractors, you need multiple types of business insurance to cover the liabilities associated with construction work. From general liability to vehicle or property insurance to workers’ compensation, you have a lot of ground to cover.
To find out what levels of contractor insurance in Alabama you need, contact an experienced insurance agent. The team at The Nowell Agency, Inc. can help you assess your liabilities and find the right level of contractor insurance coverage to ensure your business is secure.
Call us at 601.992.4444 to learn more about contractor insurance in Alabama or request a quote for coverage online.