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Contractor Bond and California Construction News Posts

Understanding the Ouija Board

I’m sure you have seen it in the movies a dozen times.  There are several friends and family members gathered around the table with a Ouija board and they are listening closely for a voice from the other side.  Most people do not know how to properly use a Ouija board and this can cause problems. It is vital to find a Charlotte psychic who is experienced, otherwise It can summon up evil spirits that do not have your best intentions in mind.

The Ouija board was first created in the mid 1800’s even though many people like to claim that it is thousands of years old.  That just isn’t the case.  It started out as a simple toy that was created by a company called Kennard Novelty.   However, most of us are familiar with the second toy company who bought the original Ouija board by the name of the Parker Brothers.

The name Ouija is a combination of French and German meaning Yes.  When using the Ouija board you will want to make sure the mood is set right.  This is most commonly done by dimming the lights or turning them off completely and using only a candle as your light source.  Personally, the candle is my preferred method.

Many times a person is trying to contact a specific spirit from the other side.  Therefore, placing items that are known to be specific to them can help conjure the spirit up faster.  It is important to be polite and respect the spirits you are trying to summon.

Warm the board up by asking it simple questions.  You can then move on to the more difficult questions after you have made a good connection.   Sometimes the board will answer your questions in rude and inappropriate ways.  Remember you are the one who is in control and in those times you can slide the rule to Goodbye to end the game.

After you have completed the game be sure to end the game with Goodbye otherwise it can be disrespectful to the spirits.  A Ouija experience can make for quite an eventful evening and liven up a party.  Just remember to treat the spiritual realm with care and respect and all will go well.

5 Benefits of Liability Coverage for Contractors

5 Benefits of Liability Coverage for Contractors

All construction businesses are demanding and portray higher risks of accidents than other companies. California contractor liability insurance protects your personal assets. A good liability cover for contractors protects against injuries, property damages and accidents that occur when working.

In some states, investing in the least liability coverage is mandatory. However, in other countries, it’s an option. Although omitting a liability cover might seem to help save money because a contractor doesn’t need to pay premiums, it’s a risky affair. The benefits that come with paying for liability coverage for contractors outweighs the money spent on premium payments.

The significant benefits of having liability coverage for contractors include:

1. Offers Protection against Injury Claims

Contractors’ duties are demanding and risky. The policy is a relief to contractors when used to pay medical bills, funeral expenses, and compensations to affected parties. A business can face a financial crisis when it’s expected to cater for injury claims. Things get worse when a contractor has to pay for any injuries or claims. For More information visit:

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Paying a monthly or annual premium might look expensive, but comes in handy when accidents happen. A business might face closure when a court demands compensations, which in most cases, entail vast sums of money.

2. Protects Businesses against Property Damage

Liability coverage protects contractors against property damage claims when it’s demanded to pay a compensation fee to affected parties. A construction job can go wrong and damage a client’s property, the neighboring premises or hinder others from using their properties.
When a small or medium company is faced with such claims, it might be unable to pay the offended party, which is an offense. Liability coverage saves the day and protects clients from unexpected losses, damages or even injuries.

3. Cover Other Claim Charges

When a business is faced with an offense, the claims also attract other legal processes and thus charges. Apart from settling the claims, liability cover also caters for court expenses, witness fees, and attorney fees. The cover saves the client from having to spend on hiring lawyers to represent them in court.

4. Cover Copyright Claims

Contractors can be sued for creating designs similar to those of their competitors. Liability covers save contractors from paying for copyright claims often in vast sums of money.

5. Provides a Certain Level of Security

Contractors face many challenges in their line of duty. The difficulties can easily interfere with their peace of mind as well as security. That’s where liability coverage comes in to help with all the troubles. Paying cover premiums is a relief because most claims are eventually paid.

The cost of liability coverage is highly dependent on the risks involved and the kind of work at hand. The more the risks involved, the higher the amount a client has to pay in premiums. Contractors should consider securing their premises so that the cost of their premiums can be reviewed and reduced to lower rates.

General Liability Insurance Tips for Contractors

General liability insurance for contractors protects a company and pays for obligations. Contractor’s Insurance Texas covers medical costs if a person gets injured on your property, or in case you or your employees caused damage. It also pays for the expense of legal issues as well as pays for settlement in case you get sued. Even it includes the non-monetary losses as well as the compensatory damages suffered by the third party along with the punitive damages.

The insurance also protects you from any liability. For instance, while living as a tenant, anything happens to the rented property it will come under the covered losses. It means you don’t have to pay the amount from your pocket. It can also help to protect against false copywriting, slander and false advertising claims.

Does your business need general liability insurance?

Living i.n a litigious society, having insurance is a good decision, it is a wise investment that does not cost much. Depending on the type of business, a contractor needs more coverage than a stylist or a web designer.

Here are a few general liability insurance tips for contractors:

• Assess your insurance needs and risks:

Before you shop for business insurance, analyze the risks that your business may face. The employees can be trained for the safety procedures, but accidents can still occur, therefore its best to remain prepared for the worst case. The insurance company will determine the level of risk that they will accept when they review your application and your coverage will depend on the level of risk. The amount of premium is ascertained depending on the risk. As time goes, your business insurance needs may vary. Therefore its suggested to reassess the coverage needs annually.

• Find a provider that you trust:

Finding the best provider of insurance who provides reliable coverage to meet the needs of the business can be troublesome. Look for an agent, who will work in your favor and try to get you the maximum benefits.

• The cheapest policy is not always the best policy for your business.

An inclusive insurance policy may look expensive, but on the occurrence of claim, the plan offers more coverage than a cheap limited one. There are policies that can be customized with endorsements as per your business needs. But you need to be sure whether it’s reliable or not.

• Look for various contracting insurance specialists:

Different companies offer different coverage and premiums. Thus, it’s crucial to consult the contracting insurance specialists who have the expertise in this field. They will tell you the suitable insurance as per your business. The professional agent understands the risk that is unique to your business and can help you to find the appropriate coverage at competitive rates.

General liability insurance for contractors helps to cover the unique risks that a construction business faces every day.

Protect Your Construction Company with an Insurance and a Bond

Contractor Insurance and Surety Bonds

General liability insurance and a contractor bond play a vital role in safeguarding your assets and personal belongings as well as yourself. If there is any damage to your business, whether small or big, you can claim a specific amount from the insurance company. It provides you security for:

• Asset protection
• Protection of your business and contractors
• Survival plan in case of accidents and injury

You need insurance and proper contractor bonding if you are working with clients, offer design-build-services, or you are working for some other person as a contractor. Apart from this, it also offers a wide variety of services for your construction companies along with protecting the construction company. Some of them are as follows:

1. Bodily injury claims

If your contractors or any other person visiting your construction company meets an accident on the premise, you will be liable to pay the medical expenses and injury charges to the third party. If you want to get the people protected against any damage, then get general liability insurance. The insurance company is liable to pay for any injury to a person in your construction company. Hospital fees and medicine charges are paid by the insurer. But remember your workers are not covered under it as you have to purchase workers compensation insurance to safeguard them.

2. Property damage claims

This insurance provides you the safety of your construction property. If your property gets destroy due to natural calamity or is damaged by the workers, then the liability insurance company is liable to pay a certain amount for the same. However, it does not covers your contractors or workers property if damages.

3. Completed products claim

This factor covers the product and services generated by your business. For instance, if you sell any product which causes damage to your customer then you need not pay any damage charges or injury fees as these are covered by the insurance company.

4. Faulty workmanship claims

This feature is available only in few insurance packages. If there is any carelessness in your work or if any project doesn’t complete according to the time or if you went greater than your budget then you can claim the insurance company. However, it is not provided by every insurance company so ask the insurer if there is any term for the same.

5. Personal and advertising injury claim

General liability insurance policy covers libel, slander, and copyright issues. If you have decided to advertise your construction company on social media, then you will be insured against these cases.

6. Immediate medical expenses claims

The most important coverage it provides is the protection against sudden accident in your construction company. The company will immediately pay all the medical expenses if any client gets wounded in it.

Since uncertainties can’t be predicted before it happens, therefore, it is essential to get insured under general liability insurance and protect your company visitors, cover the medical expenses, and property from damage. Do not wait for the right time, get it now and save your belongings and near ones.

The Benefits of Bonding your Construction Project


In the construction industry, there are two important types of surety bonds: contract bonds and license or permit bonds. Within contract bonds, there are three more divisions: performance, bid and payment bonds. It’s important to understand what surety bonds are and the different types within the construction and contractor industry.

Surety bonds are a contract between approximately three parties

Obligee – the one who receives the obligation Principal – the one who performs the contractual obligation Surety – ascertains the obligee that the said principal can undertake the task

It promises the obligee a particular amount of money if the principal doesn’t meet the obligation, like satisfying the terms and conditions of a contract. Surety bond does the obligee from losses that could result if the principals do not comply with the obligation.

Contract bonds, simply put, guarantee the actual performance of a written contract according to its terms and conditions. In performance bonds, a contractor issues a bond to perform a project to specifications stated in the contract. The client would be given compensation for a monetary loss up to the amount issued in the bond if the contract was not completed.

Performance bonds are helpful when bidding or negotiating a construction contract. Many times when bidding, there is a concern of how competent and capable the contractor is to do the work. It can be difficult to properly check a contractor’s financial credentials, especially if there are no assets to satisfy a claim. But a performance bond can provide the security needed. A bid bond guarantees that the contractor with the lowest bid will enter into the contract and provide a performance bond.

Typically, project owners are unaware if the contractor has financial stability and the necessary resources to complete a project successfully. A bid bond provides comfort because of the compensation awarded if the project fails. A payment bond ensures that material suppliers, any subcontractors, and all laborers receive compensation. In contracts over $30,000 with the Federal Government, this type of bond is required. Also, they must be 100% of the contract value.

License & Permit Bonds ensure all required codes and regulations and followed. A California contractors license bond is a commonly required license bond by the CSLB. These are usually established by a government entity like a city, town or state. Often the purpose of these types of bonds is for public safety because it indicates the contractor knows and follows the set regulations.

It is wise to contact the licensing agency to make sure the contractor has the necessary bonds and if any claims are pending against the bond

In conclusion, it’s not uncommon for small issues to arise during construction contracts, and most problems can be resolved without involving other parties. It’s important to identify when a problem isn’t being addressed. If this happens, a thorough understanding of the contract and bond will be the best protection. To learn more please visit a trusting bonding website that reveiw contractor bonds in much more depth. Thanks for reading!

5 Tips on Getting Your Construction Bond Approved

Big construction works are a very risky kind of business, therefore such projects require the individual or construction company to cushion themselves against extreme events which can cause disruptions to the effective execution of the said job. It is very important for a company to show that it is worth to be given a bond for its projects. Below are five tips which can help a construction company to get its bond approved.

1. Give a convincing statement

Regardless of whether your company is financially stable or not, you must clearly demonstrate this to the bonding company. Make sure that your financial statements are complete, honest, clear and accurate. Submit these to the bonding company alongside any other documents as required.  Here is how to prepare a financial statement.

2. Have a strong capital base

Whether a bonding company will give you a bond or not depends on the working capital available. This is defined by the difference between the current assets and current liabilities. Always make sure that your currents assets are readily available and can easily be converted to liquid cash. Bonding companies normally discount riskier assets hence the need to increase collection of receivables and maybe consider replacing a short term loan with a loan term one.

3. Ensure your net worth and profitability is not wanting

Factors such as bonuses and overhead costs affect the profitability of a company, hence the need to make sure that they are well managed as they are a key indicator of the financial stability of your business. Even though bonding companies discount risky assets, it is important to eliminate these from your balance sheet and instead reinvest your profits to increase your chances for bonds. Your net worth is an indicator of your ability to manage losses when they occur hence the need to keep it in check.

4. Keep updates of your work progress

Financial strength is very key when looking for a bond. Aspects such as subsiding of the company’s gross profits during the course of an ongoing project shows inaccurate estimations and poor project management. The estimation should neither be too high as this translates to over billing of projects to compensate the subsiding gross profit or too low leading to cost over runs. Make sure that your estimation and project management process are carefully managed by preparing timely and accurate work in progress reports. This will add bonding confidence.

5. Always have a back up plan

Even though one has laid out plans for their companies, it is important to consider all possibilities which might lead to unexpected bad financial news which is not good for bonding companies. Ensure that you have a succession plan in place and your long term prospects are always strong. Be in constant communication with the bonding company regarding developments or situations affecting your company’s financial performance. This not only increases the bonding company comfort but also indicates your good will hence providing an opportunity to give a turn around strategy to the bonding company

Employment of the above tips will not only help you in getting bond sureties but also attract customers, investors and lenders to your business which will ensure consistent workflow and timely delivery.

Different Contractor Bonds Explained

Bonds are a way of shielding against non-performance of a contractor. It is an assurance to the client that they will be paid in the event that there is non-performance of the contractor. Bonds can be classified into two broad categories, on demand or conditional. It is required of conditional bonds that the client gives proof of non-performance and the resulting loss thereof.

Construction bonds, which are commonly known contractor bonds, are a representation of surety bonds. They offer financial assurance that construction project bills will be paid. The insurance company that issues the bonds or the bank gives guarantees the completion of the project under the commitment of a given contractor. Construction bonds are a protection to the assets shielding the project owner or the investor against poor work or even project non-completion. The following are the three main types of construction bonds: bid bonds, performance bonds as well as payment bonds.

1. Bid Bonds (or tender bond)

The purpose of this bond is to protect the client if the contractor fails to honor the bid. The client is obliged under the bond and has the sole right to take legal actions against the contractor, while the issuer of the bond is bound to implement the bond. In the event that the principle fails in honoring the bid, both the principal and the bank and insurance company (surety/ issuer of the bond) are held liable for any extra costs incurred during the process of re-contracting or re-tendering and consequently contractor replacement.

2. Performance Bonds

This type of contractor bonds is given to contractors to guarantee that they will be responsible for the completion of the project as per the terms and conditions thereof. The client calls upon the surety/ the issuer of the bond to run the project until completion if the principle fails. In such events, the surety re-assigns the contract to a new contractor or even fund the client to be able to complete the project.

3. Payment Bonds

A payment bond is an assurance that all the due payments to the subcontractors and suppliers shall be paid. The immediate beneficiaries of payment bond are providers of raw materials and subcontractors. The client benefits greatly since payment bonds are alternatives to mechanic’s liens as a cover for non-payment.

Eligibility to Construction Bond

Every issuer has its means of determining the eligibility of applicants of contractor bonds. However, by standards, applicants ought to have the right skills, resources and the capacity to execute the contract and comply with the terms and conditions of the contract. An analysis of the financial statements and further investigation of the work history, financial position, and credit rating. The surety performs all these.