What is generally required before a contractor can start work on a project?

Before a contractor can start work on a project, it is essential for them to provide proof of liability insurance. This requirement is crucial because liability insurance protects both the contractor and the client from potential financial losses that may arise due to accidents, injuries, or property damage occurring during the course of the project. It serves as a safeguard ensuring that if something goes wrong, there are funds available to cover the costs associated with such incidents, thereby protecting all parties involved in the contract.

While options such as completing a bidding process, obtaining state regulator approval, or contractor registration may be part of the overall workflow for starting a project, they are not universally required for a contractor to commence work. In contrast, having liability insurance is a standardized prerequisite that is often mandated by law or by the stipulations of the project, making it a fundamental aspect of the contractor's professional responsibilities before initiating any work.