Capitol Connection Q & A for Contractors
By Shauna Krause, President, Capitol Services, Inc.
Let’s start with a ‘liability’ lesson, of particular note for LLC licensees. A reminder on no bidding without an active license and a ‘test’ on exams…
Q: You recently helped me set up my corporation and obtain a Contractor’s License. I now have put General Liability coverage in place. Can this be added to the CSLB site under my license? Please advise on how I go about doing this.
A: The CSLB does not put liability insurance on record for corporations. They only require proof of liability insurance for Limited Liability Companies (LLC’s), so LLC’s are the only type of entity where you will see liability insurance documented on their license. As you know, customers ask for proof of liability insurance regardless of the type of entity you are, so it’s always good to have!
Q: I have a pending Contractor’s license application. I received in the mail a letter with an “Application fee number” and “PIN number”. Will the official license number be the same as the application number? One of my potential customers is asking my license number and I was hoping I could give him that number as our “future” number.
A: No, you will be issued a different license number. Your application fee number is strictly to monitor your pending application. There is no way to know what your license number will be until it’s actually issued and you can’t bid work until then.
Q: I was scheduled for an exam three weeks out from now. I hate to delay this process, but I really would like some more time to prepare. Is there a way to request a later date for the exam? Also, how long do they give you to take the test? Do you know the configuration of the test in terms of number of multiple choice vs. free response questions? As you can tell, I’m a bit nervous about the exams. I’m not a good test taker!
A: Yes, you can request a later date either by calling the CSLB testing unit, or you can make the request in writing. You get a one-time free reschedule. The CSLB allows you three and a half hours for each exam and you take it as many times as you need to within 18 months. There are no free response questions, all questions are multiple choice.
Q: Your office had informed me of the need for proof of Worker’s Comp if we will be employing California employees. How do we go about getting Workers comp before we actually have employees?
A: It is my understanding that most insurance companies can issue a Worker’s Compensation policy prior to your company hiring employees. The alternative is to hire employee(s), but before you actually allow them on the job working, ensure that your policy is in place.
While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email email@example.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.