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Facts About General Liability Insurance for Contractors in Tennessee Part 2

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In part one of this two-part series, a Nashville construction dispute lawyer discussed the importance of general liability insurance for contractors in the construction industry. Now, we will discuss two important facets of general liability insurance in the Volunteer State: amount of insurance and proof of insurance.

If you’re working as a contractor without general liability insurance or a valid license, you’re only putting yourself at risk. Consult a Nashville construction dispute attorney to see what you can do to ensure that you are compliant with all relevant laws governing construction contracting in the State of Tennessee. Our talented team of experienced construction law professionals is well-versed in a variety of helpful services including license defense, bid protests, employment law, OSHA defense, and more. We can also provide you with aggressive representation in court.

What is the Right Amount of Insurance for Your Business?

All licensed contractors in Tennessee must observe the following rules dictating the appropriate level of insurance coverage for contracts related to the improvement of real property:

  • If you are contracted to complete a project costing between $0 and $500,000, you are required to procure a general liability insurance policy worth no less than $100,000.
  • For projects costing between $500,001 and $1,500,000, the contractor is required to obtain a general liability insurance policy worth at least $500,000.
  • Projects with a monetary limit of or exceeding $1,500,001 require the contractor to acquire a general insurance policy worth $1,000,000 or more.

Proof of Insurance for Contractors

All contractors are required to submit proof of their general insurance liability policy before applying for licensure with the Board (Board for Licensing Contractors). A copy of a certificate of insurance can be used to prove that a contractor does, in fact, have an active policy. When a contractor renews his or her license with the Board, they must prove that they have maintained their general liability insurance policy throughout the duration of time stemming from their prior license acquisition or renewal. Additionally, the contractor must list the Board as the certificate holder to validate the general liability insurance policy and ensure that licensure is maintained.

If you would like to speak with a Nashville construction dispute attorney, please contact us today.

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.