Contractor FAQs

Your firm must at all times be in good standing in the state of Connecticut with respect to the type of corporation, partnership, or other form of organization you have adopted. You must also agree to conduct yourself at all times with fairness and understanding, and with the highest degree of business integrity. Lastly, with respect to Type 2 claims (reimbursements), for foundation replacement projects you undertook and completed, you must agree, without charge, to assist the homeowner in identifying the eligible concrete work you did on the project according to CFSIC’s Underwriting and Claims Management Guidelines, and provide the homeowner with a written list of that work and what you charged for that work. (This is true even if you didn’t do it the first time.)

No. You may use any template that you and the homeowner can agree to, provided, at all times, that you clearly segregate all costs associated with the work that CFSIC will pay for in your contract. Said another way, CFSIC’s claim adjuster must easily be able to identify and approve the work CFSIC will pay for. Learn more about what we'll pay for.

Yes. No contractor will be eligible to participate in the CFSIC program without first providing to CFSIC a surety bond issued by an insurer admitted in the state of Connecticut, in a minimum amount of $250,000, and where CFSIC is the Obligee. This is to securitize CFSIC’s payments to you in satisfaction of all the work you are doing. (You do not have to file a separate bond for each project.) A copy of that surety bond should be sent to ESIS ProClaim (CFSIC’s claims administrator) at: cfsic@esis.com. Should you prefer to put a copy in the mail, you can send it to:

Connecticut Foundation Solutions Indemnity Company, Inc.
c/o ESIS ProClaim
82 Hopmeadow Street
Simsbury, CT 06070

When you do this, you must identify clearly, in the email or other transmittal, who you are, the name of your firm, and that your firm currently is shown on the CRCOG list, or that your application to be on CRCOG’s list is pending.

The amount of the surety bond each contractor will be required to post, for all the work performed, will be solely the decision of CFSIC’s Superintendent, and will be based on the Superintendent’s assessment of the average amount of work you are doing in support of CFSIC at any given time and its cumulative construction value. The Superintendent will notify you 30 days in advance of when you need to increase the minimum bond amount with the incremental amount you will need to post. However, the bond face amount will never fall below $250,000 as long as you are participating in the CFSIC program...even if that means one project.

CFSIC is an independent company. It is not owned by or is an affiliate of the State of Connecticut. CFSIC will be carefully tracking its financial obligations, during each fiscal year, as the program rolls out. CFSIC will not approve applications for work to be undertaken by a contractor if at any point the total of CFSIC’s expected statutorily indicated revenues are exceeded by its estimated expenses. Additionally, and inside each fiscal year (CFSIC’s fiscal year ends on June 30), CFSIC will not accept applications beyond the point at which, within any fiscal year, it cannot honor actual claim and expense payments due in that fiscal year. If at any point CFSIC cannot meet future obligations, whether those obligations are related to cash on hand in any fiscal year or related to the total amount of statutorily committed funding CFSIC expects to receive, this fact will be posted on CFSIC’s website and will be disseminated to the media. At that point, CFSIC will cease operations with respect to new applications in order to honor existing claim commitments.

Any gap of any kind (whether it is a gap between CFSIC’s cap on the eligible concrete work and your total proposal just for that work...or whether it’s a gap between CFSIC’s cap and all the work encompassed by your proposal, whether concrete work or not) is solely the responsibility of the homeowner. You must separately determine the homeowner’s ability to pay you for any work you undertake, as ordered by the homeowner, which is beyond CFSIC’s scope of possible payment.

We fully expect that the Connecticut Housing Finance Authority (“CHFA”) will eventually launch the “Collapsing Foundations Credit Enhancements Program” which may provide financial assistance in the form of loans to homeowners in one or multiple forms covering any gap or partial gap that may exist.

CFSIC is prepared to work collaboratively with CHFA and others to provide them with relevant homeowner information on the homeowner’s application at the appropriate time and place. Until the CHFA program is launched, we advise contractors participating in the CFSIC program to assure themselves of the homeowner’s ability to provide funding for the completion of their foundation project in excess of what the CFSIC program will cover.