During the 2010 legislative session a new law was created with the support of the Home Builders Association of Mississippi regarding general liability insurance for home builders.
Any builder not following the law is subject to the fines and penalties of the Mississippi State Board of Contractors.
Effective immediately, ALL BUILDERS are required by law to notify the home buyer if they carry or do not carry general liability insurance when a contract is signed. The language is mandated by the Mississippi State Board of Contractors. The law stipulates that the language must be:
– In bold and conspicuous type with a font larger than the font appearing in the rest of the contract;
– Placed immediately before the space reserved in the contract for the signature of the purchaser.
FURTHER, A BUILDER MUST USE THE FOLLOWING LANGUAGE AS PRESCRIBED UNDER THE LAW:
If the builder carries general liability insurance:
Mississippi law requires that I inform you as to whether I carry general liability insurance insuring my work under this contract. I DO carry general liability insurance. By your signature below, you signify your understanding and acknowledgment of this fact.
If the builder does not carry general liability insurance:
Mississippi law requires that I inform you as to whether I carry general liability insurance insuring my work under this contract. I do NOT carry general liability insurance. By your signature below, you signify your understanding and acknowledgement of this fact and that as a consequence, you are hiring an uninsured contractor. Without insurance, there is no insurance coverage for damage to your home caused by me, my agents or employees or for injuries sustained by others while I am working on your property or subsequent to completion of my work.
Once this becomes standard practice consumers will become aware of their exposure with uninsured contractors.