Every contract you enter into has the potential to decide the course of a project. They are the quintessential factor for preventing and deciding legal disputes. So don’t you think you should give these important documents a little more consideration before signing on the dotted line?
Below, a roofing attorney discusses four questions you should ask yourself before signing a contract, including “What are my roofing insurance requirements?” Hopefully, by following our advice, you can avoid many of the pitfalls that have claimed countless other roofing companies.
1. Who Am I Entering Into a Contract With?
Most likely, you’re either contracting directly with the owner or the general contractor. Depending on the state you’re in, this will have incredible ramifications on if and how you can file a mechanic’s lien during a payment dispute. Furthermore, your contract could contain certain contract provisions, such as incorporation clauses, or unclear language that allows for third-party benefits.
2. Have I Reviewed the Contract?
Be sure to review your contracts before and after signing to prevent any nasty surprises. Too often, roofers are pressured into signing contracts they are not comfortable with — contracts that contain vague or misleading language. Even more often, industry professionals will download a roofing contract only to find that it isn’t comprehensive enough to cover their work. The internet can be an incredibly useful resource, but it should not be your sole legal resource, especially when drafting a contract.
3. Do I Have the Right Type of Insurance?
Roofers are generally required to obtain general liability insurance and workers’ compensation insurance. For example, in the State of Florida, roofers are required to have workers’ compensation insurance if there are one or more employees, including the owner. But while these insurance requirements are the bare minimum, there are other insurance types — commercial vehicle coverage, advertising injury coverage, etc. — that could be incredibly helpful to your business and are included in a comprehensive roofing insurance policy.
4. Am I Properly Licensed?
You would think that this would be a no-brainer. Roofers contracting in a state should be licensed to work in that state, right? While this is correct, you must also consider the city and county you’re working in. For example, roofers working in Miami-Dade County must be licensed by Miami-Dade County’s Contractor Licensing Section. Consult one of our attorneys if you have any questions regarding license requirements or are ever in need of license defense.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.