Classification A: General Engineering Contractor: 7056

You will be classified under this category if your main contracting business is in connection with fixed works that require specialized engineering skill and knowledge. This includes the individuals and businesses in divisions like drainage, irrigation, flood control, water supply, and inland waterways, harbors, docks and wharves. Others are shipyards and ports, dams, reclamations, works, railroads, etc.

Classification B: General Building Contractor: 7057

A general building contractor is someone whose contracting business relates to a structure being built or modified. You will need this classification if the project requires two or more different trades or types of subcontractors. As a general contractor with this California license code, you may also take a subcontract or prime contract for carpentry or framing project.

Classification C: Specialty Contractor: 7058

The California Class C license code is for specialty contractors who are into crafts or trades that do not fall within the scope of a general contractor. Such include those who engage in services and testing of fire extinguishing systems, installation and laying of resilient floor covering, carpets, linoleum, etc. Those who specialized in roofing, plumbing, concrete, and heating, ventilation, and air conditioning (HVAC) will also be under this category.

Eligibility for California Contractor License

California contractor licenses are issued by the Department of Consumer Affairs Contractors State License Board. To become a licensed contractor, you will need to be at least 18 years old, present evidence of $15,000 bond, and be a citizen or legal resident in the United States. Other requirements include fingerprint screening as part of the criminal record background check. Additionally, you must pass the basic license examination or qualify for a waiver.

Getting Additional Classification

Additional classification is allowed if you have an existing license. You can add any of the three above classification to the already existing license, provided you have the skill set for the intended additional category and meet the examination requirements. You may also remove a classification from your license if you feel it is no more needed. Keep in mind that to re-add a removed classification to your license, you will need to reapply for it with a fee.

Other Licensure Application Types

Apart from the above three classes, there are other trades that require certifications. If you perform any of the following along with your specialization, you will need to get them, more like additional classification to your existing license:

• Home Improvement Salesperson (HIS)
• Asbestos Contracting Works
• Hazardous Substance Removal and Remedial Actions Work

Builders risk insurance policy can be purchased for either residential or commercial building project. The definitions of “residential” or “commercial” however, varies among the policy providers. For instance, some insurance companies may define a residential building as a family home for 1 to 4 numbers of occupants.  A commercial project could be anything from the shopping complex, office buildings, and sports arena. The policy is usually provided for three kinds of construction projects, namely:

–          Ground-up new construction;

–          Remodelling; and

–          Installation

How Does Builders Risk Insurance Work?

Just like every other insurance type, the builders risk insurance risk policy is a risk management financial plan, which pays for damages up to the coverage limit. The policy term could be for 3months, 6months, or 12 months, depending on the size of the project. In the event that the project isn’t completed when the policy expires, you can negotiate with your policy provider for an extension.

What Does Builders Risk Insurance Cover?

Damages from events such as fire, wind, explosion, vandalism, hail vehicles, are often covered by the policy. In some cases, limited coverage may be made available for building collapse. Comprehensive coverage may also include damages from events like earthquake, war, weather to property, mechanical breakdown, flood, and theft.

Keep in mind, however, that liabilities from injuries and accidents, and professional liability are excluded from the coverage. You may get stand-alone liability insurance for this purpose. Also, if you have subcontractors working on the same project, they will need to get their own insurance separately. The policy coverage is restricted to the building it is purchased for, and will not cover property belonging to other people.

Who Needs Builders Risk Insurance?

Builders risk is a crucial insurance policy that is essential for those who are into building construction. Having it will significantly help in averting potential financial loss from common damages in building construction. It will also help protect your reputation as a builder. You will most likely need builders risk insurance if you are a:

Builder

Contractor

Homeowner or property owner

Development or investment company owner

House flipper

How Much Builders Risk Insurance Do I Need?

There’s no one-cap-fits-all to this. The budget for the building will determine how much policy you will need.   Generally, builders risk insurance price ranges from 1% to 4% of the total construction cost. The exact policy amount will depend on the number or the kinds of items you want the policy to cover. While you will want to be prudent with your budget, it is essential not to leave out crucial aspects, including soft costs of the project. This will guarantee adequate coverage when the need arises. When shopping for a builders risk insurance policy, do ensure that you patronize a reputable insurance company that will guarantee a prompt response to your claims. 

In order to receive a quote on builder’s risk insurance, please click on the following link:

https://www.safeproinsurance.com/forms/docs/Course-of-Construction-Application-spi.pdf

Classification A: General Engineering Contractor: 7056

You will be classified under this category if your main contracting business is in connection with fixed works that require specialized engineering skill and knowledge. This includes the individuals and businesses in divisions like drainage, irrigation, flood control, water supply, and inland waterways, harbors, docks and wharves. Others are shipyards and ports, dams, reclamations, works, railroads, etc.

Classification B: General Building Contractor: 7057

A general building contractor is someone whose contracting business relates to a structure being built or modified. You will need this classification if the project requires two or more different trades or types of subcontractors. As a general contractor with this California license code, you may also take a subcontract or prime contract for carpentry or framing project.

Classification C: Specialty Contractor: 7058

The California Class C license code is for specialty contractors who are into crafts or trades that do not fall within the scope of a general contractor. Such include those who engage in services and testing of fire extinguishing systems, installation and laying of resilient floor covering, carpets, linoleum, etc. Those who specialized in roofing, plumbing, concrete, and heating, ventilation, and air conditioning (HVAC) will also be under this category.

Eligibility for California Contractor License

California contractor licenses are issued by the Department of Consumer Affairs Contractors State License Board. To become a licensed contractor, you will need to be at least 18 years old, present evidence of $15,000 bond, and be a citizen or legal resident in the United States. Other requirements include fingerprint screening as part of the criminal record background check. Additionally, you must pass the basic license examination or qualify for a waiver.

Getting Additional Classification

Additional classification is allowed if you have an existing license. You can add any of the three above classification to the already existing license, provided you have the skill set for the intended additional category and meet the examination requirements. You may also remove a classification from your license if you feel it is no more needed. Keep in mind that to re-add a removed classification to your license, you will need to reapply for it with a fee.

Other Licensure Application Types

Apart from the above three classes, there are other trades that require certifications. If you perform any of the following along with your specialization, you will need to get them, more like additional classification to your existing license:

• Home Improvement Salesperson (HIS)
• Asbestos Contracting Works

Hazardous Substance Removal and Remedial Actions Work.