COVERS

COVERS

1. CONTRACTOR BONDS (Action of the contractor)

   • Bid Bond
     • Required during the bidding phase
     • Assures the owner that the contractor will accept the award of contract if he is the winner bidder (lowest, responsive and responsible).
     • If the contractor does not sign, and the owner signs with the next lowest bidder, then the bonding company pays the owner the difference.
   • Performance Bond
     • If contractor defaults on completing the project, then the bonding company pays the extra cost of using another
   • Payment Bond(Labor & Materials Bond)
     • If the contractor fails to pay, then bonding company pays
   • Maintance Bond
     • If there is a defect or failure in the project, due to materials or workmanship, within a specified time (say 2 years) after project completion, the contractor should come back to fix it or the bonding company pays for repairs.

2. CONTRACTOR INSURANCES (Liability &Accidents)

   • Workman's compensation Insurance
     • Protects the workers from injury from the job
     • Covers medical expenses and loss of wages
     • Accident or injury must be on the job.
   • Comprehensive General Liability
     • Automobile physical damage (Collision)
     • Contractual liability (owner and designer)
     • Contractor protective insurance (Subcontractor)
     • Completed operations insurance
     • Automobile bodily injury and property damage
   • Destruction, Disappearance and Dishonesty Insurance
   • Equipament Floater Policy
   • Builder's Risk Insurance
     • Acts of Nature: Floods, tornadoes, earthquake, fires, etc.
     • Vandalism and mischief (from outsiders)
     • Installation Floater Policy (collapse of already installed portion of the project)
   • Property Insurance