Notice to ContractorsPosted on Nov 6, 2009 in Contractor Important Announcements
Information for Contractors on insurance requirements and notification requirement upon loss of RME.
General liability insurance (and workers’ compensation insurance, if
applicable) is required to maintain the contractor license. Failure to
maintain the required insurance will result in the automatic forfeiture of
the business entity and responsible managing employee licenses. The licenses
may be restored by submitting proof of continuous insurance coverage within
60 days; however, if there is any gap in insurance coverage, the licenses
are considered forfeited and new applications and payment of new license
fees will be required for re-licensure.
Contractors required by the Board to have surety bonds must also maintain
continuous bond coverage or face automatic license forfeiture.
Loss of Responsible Managing Employee (RME)
A contracting entity who qualified for licensure by employing an RME must
notify the Board within 60 days of the death, dissociation, or disability of
the RME. Failure of the contracting entity to notify the Board within 60
days, and to submit an application for the new RME or place the
entity license on inactive status within 90 days, will result in the
automatic forfeiture of the entity’s license.
RMEs are also required to notify the Board within 60 days of separating
from an entity, and must apply to become a contracting entity, obtain
employment with another contracting entity, or place the license on inactive
status within 90 days of separation. Failure to do so will result in
the automatic forfeiture of the RME’s license.