What are the insurance requirements for a construction company?

In Washington, construction companies must have proper insurance to engage in building activities. This includes liability insurance, workers’ compensation insurance, and an acceptable form of performance bond. Liability insurance covers any bodily injury or property damage that might occur as a result of a construction company’s actions or negligence. It provides protection against financial loss that can arise from lawsuits or other claims. Workers’ compensation insurance is also a requirement in Washington. This provides coverage for any workers who are injured or become ill while on the job. The coverage helps pay for medical expenses and lost wages due to injuries or illness. The performance bonds help guarantee that the construction company will complete the job as specified in the contract. The performance bond is a form of insurance issued by a third party that protects the homeowner/owner of the project from any financial losses due to the contractor’s nonperformance. These insurance requirements are a key part of construction law in Washington, and must be followed in order for a construction company to legally operate in the state. Having proper insurance is vital to protect both contractors and homeowners from potential financial losses.

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What are the insurance requirements for a construction company?

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