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Property Preservation Contractor Insurance Requirements
Contractors are required to have Comprehensive General Liability, Errors and Omissions, Non-Owned & Hired Auto Liability coverage as well as Workers Compensation coverage. In order for a contractor to begin and continue business with SAMPLE COMPANY, the following insurance coverage is required:
Errors & Omissions in the amount of $1 million per occurrence / $1 million aggregate covering:
Residential property inspections
Delinquent borrower interviews
Commercial property inspections
Insurance loss inspections
Eviction services
Property preservation inspections
Property preservation estimates
Property preservation services (including but not limited to REO services)
Property repair estimates
Property rehabilitation services
Commercial General Liability in the amount of $1 million per occurrence / $1 million aggregate including coverage for:
Personal injury
Advertising injury protection
Care/Custody/Control coverage in the amount of $50,000
You must contact your insurance agent and instruct them to add “SAMPLE COMPANY” as an additional insured under all your liability policies.
You must deliver to SAMPLE COMPANY insurance certificates with SAMPLE COMPANY listed as an additional insured.
The Certificate of Insurance must provide for a minimum of 30 days Notice of
cancellation, non-renewal or material change to the policy.
You must submit to SAMPLE COMPANY proof of your participation in your state’s Workers Compensation fund by sending a copy of your Workers Compensation certificate for each state you work in.
Proof of renewal of all insurance coverage is required on or before current policy expiration.
The insurance company issuing your policy must be rated at least A-VII or better by the A. M. Best Company.
Lesson 1: Property Preservation Vendor Contracts
Property Preservation Vendor Contracts
It cannot be emphasized strongly enough that all contractors should have a legal advisor look over all contracts that need to be signed. A very smart move would be to consult with this legal advisor on other issues related to the property preservation business such as real estate, personal property vs debris, evictions, conversion of property and just about anything else.
The information in this chapter (Contracts) will consist of phrases and wording taken from various contracts that circulate around the industry. Some of the phrases or words will have links to additional information you should investigate.
You are again reminded that this material is not intended to be legal advice; this material is for training purposes only.