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Insurance Requirements for Under current law, licensees were required to maintain public liability insurance with limits of at least $100,000 per occurrence, including at least $10,000 in property damage coverage. Under the new law, licensees will have to maintain commercial general liability insurance, including premises and operations insurance and completed operations insurance. The policies must also meet one of two policy limitation requirements: EITHER (1) $100,000 per occurrence; (2) $300,000 aggregate limit for bodily injury; and (3) $25,000 for property damage, OR, a policy with a single limit for bodily injury and property damage of $300,000 per occurrence and $300,000 aggregate limits. In addition to the new policy requirements, the legislation requires licensees to maintain a certificate of insurance on file with the Commissioner of Commerce. That certificate must not only verify that the insurance meets the new requirements, but must also provide that the insurance will not be cancelled without the insurer giving 15 days written notice of cancellation to the Commissioner of Commerce. These new requirements go into effect on August 1, 2007. The legislation does not change any other licensing, bonding, or insurance requirements for residential contractors. If you are a residential contractor you should contact your insurance agent or attorney to make certain that you comply with the new insurance requirements. The new law, Senate File 1168, was signed by the Governor on March 27th, and is codified as Minnesota Laws 2007, Chapter 9. The law amends Minnesota Statutes § 326.94, subdivision 2. The text of the new language can be found on the Minnesota Legislature’s “Minnesota Legislation & Bill Status” webpage, at http://www.leg.state.mn.us/leg/legis.asp. ^TOP
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