All Forum Posts by: Jeffrey Evilsizor

Yes - it seems the best way to limit liability is to require that work is done by licensed tradesman who are insured. Then the liability is with them. Otherwise, it seems to be with my LLC with my LLC incurring the insurance costs.

I appreciate your willingness to jump in.   The waters were already muddy.

The current re-modelers policy is in the name of the LLC, not my personal name.

I will consult keep consulting until I get it sorted out or I at least there is a thread of logic I can follow. 

The first insurance agent says I need General Contractor Insurance.  Lawyers say I need to consult with insurance agents.  So far I don't like the insurance agent counsel, but neither do I want to be exposed.  

I am not aware that the work being done in AZ requires a license.  I am getting permits for work that requires permits and no requirement of license came up.  

I spoke with another agent who is stating that I need a policy that covers not only premise liability but also completed operations coverage (builder defect) and am waiting for that quote.  Now the waters are muddier.  

Thanks Jason

What I am understanding is that if the work being done is somehow faulty ( I think of a plumbing fitting attached wrongly causing a future flood) my property insurance subrogation department would come after my company for the $60,000 flood damage claim wanting my LLC to be responsible for the faulty installation that caused the damage. They have no General Contractor to go after, only my LLC.

I am being told that I can limit my liability by using a licensed and insured general contractor or assuming the cost of general contractor insurance myself.  

Is this accurate and are there other options?  

Apparently I do have liability in Arizona after the sale of the property.  

Appreciate the counsel.  

When sharing the forms - can someone also explain the importance or function of each.  Thanks. 

I am a new investor.  I have two houses in the Phoenix market under rehab for fix/flips in separate LLCs.  I live in Kansas City. I have a trusted friend who is overseeing the rehabs that gives me confidence to invest out of state.  

My friend is not licensed, nor insured - but he knows construction and is sub-contracting out the work to reputable laborers from his personal network, some also uninsured.  

I had planned on picking up some general liability insurance for the LLC.

 Here are the insurance agents thoughts... 

"First off, if you are acting as General Contractor in AZ, you are looking at a minimum of $5k in premiums for General Liability. AZ has some very stringent construction defect suits and is the hardest state to procure GL for a GC.

So you are taking an extremely high risk by working with uninsured contractors. Not only that your money is on the line for 8 years because construction activities fall under the Statute of repose not Statute of limitations."

What are my options?

5K per year per LLC for General Liability insurance as the General Contractor even though I may or may not be able to pull off more flips this year?

What else don't I know that I need to know?

None of these subs work exclusively for my LLC and they are not my employees. Do I also have to get workers comp?

Does dissolving the LLC after sale limit my liability?

Thanks for the help.   I really can't afford any exposure that would wipe out these investments.  My wife would not be appreciative.