Wampler & Souder, LLC
Silver Spring:
240-833-2284
Frederick:
301-668-5111
Upper Marlboro:
301-736-5432

Understanding Construction Insurance

Before getting involved with a contractor, it is important that you make sure that contractor is insured. However, the statement that a contractor is "insured" is a vague phrase and what really matters is the type of insurance and the language of the policy. Below is a brief primer:

Commercial general liability insurance policy - This is the most common form of business insurance. The principal drawback of this policy is that it does not cover defects in the work performed by the contractor. It can cover damage to an existing structure, however.

Builder's risk policy - This policy covers damage to buildings while they are under construction. It is particularly important to obtain this type of insurance when a new home is being constructed.

Performance Bond - This insures payment if a contractor breaches a contract by not performing work as agreed.

Payment Bond - This insures that a contractor (or subcontractor) will be paid if work is performed as agreed.

Workers' Compensation Insurance - This insures that laborers, carpenters etc. will be compensated in the event they sustain injuries. A warning - calling individual laborers, carpenters, etc. "independent contractors" will not obviate the need for a contractor or subcontractor to obtain worker's compensation insurance that covers them.

If you are unfamiliar with insurance issues, it is very important to consult with an attorney about these issues before entering into a construction project.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Frederick Office
170 West Patrick Street
Frederick, Maryland 21701

Phone: 301-668-5111
Fax: 301-668-2770
Frederick Law Office Map

Silver Spring Office
12114B Heritage Park Circle
Silver Spring, Maryland 20906

Phone: 240-833-2284
Fax: 301-942-8296
Silver Spring Law Office Map

Upper Marlboro Office
14452 Old Mill Road
Suite #301
Upper Marlboro, Maryland 20772

Phone: 301-736-5432
Upper Marlboro Law Office Map