Any person or company performing home improvement in excess of $500, including labor and materials must be licensed by the State of California. Any person or company not having the approriate license(s) shall be subject to fines and disciplinary action by the CSLB. If any person or company in violation of the contractors state license law and contracts without a license is required to return all monies and cannot deduct material costs, labor costs or operating costs such as insurances, office rent, etc.
About the Contractor - All Contractors must be licensed by CSLB (Contractors State License Board). This is for your
protection. Information about the contractor is available on the CSLB website. You should take steps to ensure
they have the proper Liability and Workers Compensation Insurance. Also make sure all sub-contractors are licensed
and have the same insurance.
It will save you time and money in the end.
We are in one of the biggest Recession in the past 50 years. Providing down payments or deposits is not required by law to complete a written binding agreement. If you give the contractor any information such as credit cards, bank account numbers or any personal financial information you may not receive the work or materials you ordered. It is best not to offer any deposit until you have received material and labor services equal or greater then what you plan to pay.
What is State Fund or Workers Compensation Insurance? State Fund is a state operated insurance organization providing Workers Compensation Insurance all types of companies. The policy is issued to the company and fees are paid weekly, monthly or quarterly depending on the way the policy is established. In the event a worker is injured all medical bills would be paid by State Fund Insuance.
What is Bond Insurance? - All contractors must have valid bond insurance on file with the CSLB. Licenses are not issued
unless a bond has been paid for in advance and filed with the CSLB. License classification has different bond requirements.
Bond Insurance is a low cost insurance policy that is placed on the license in the event the contractor does not fully complete
the work they were contracted to do. Most bonds are $10,000.
**Important Note - Contractors
who are NOT incorporated and operate as Sole Proprietors can file EXEMPT from having to maintain Workers Compensation Insurance.
Under those circumstances the only person allowed to work on your property is the owner of the company and licensed sub-contractors.
If anyone who works on your property for that Sole Proprietorship and is not covered under Workman’s Compensation Insurance
you can be held liable. In addition, you should also be aware the owner of the Sole Proprietorship is, in most cases
not covered under Workman’s Compensation Insurance. You may be held liable if the owner of the company is injured
during the course of your patio cover installation. It is important for you to know if a company has all the proper insurances
and you also have the right to see proof the policy is in full force at the time you purchase a KIT or when you sign
a contract to have the patio cover installed.
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A+ Rating By The Better Business Bureau - You should make sure the company you are planning to have install your patio
cover or just supply you a KIT, is a member of the BBB. The BBB provides you valuable information about the company
such as business history, location, complaint history etc. The information is FREE and readily available. Click
on the BBB image and see our rating.
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