The license of the CEO might have been suspended due to the following reasons.
The CEO didn’t have an insurance cover.
Reap violation which is also referred to as habitual offenses. The CEO might have been committing a specific number of violations within a given time frame.
Point accumulation(Algar, 2011).Some of the states have a point system which assigns points to the major and minor offenses.
Plain ol’ forgetfulness. The CEO might have been required to pay a fine but ignored or forgot. According to the judgments which are given in the driving schools you are required to drop the ticket but forgot.
Serious offenses, depending on the state on which the CEO was in case he committed some of the serious convictions which might have led to the immediate suspension of the license.
He was not a registered building practitioner by the relevant bodies which are responsible for registering the building practitioner According to the Metharom construction company to be registered as a director you have to be a register builder practitioner.
The qualifications which the CEO had did not meet the requirements.
The Explanatory memorandum
To the Metharom construction company about the types of insurance, the company should have.
The explanatory memorandum has been prepared by the CEO of the Metharom Company to determine the types of the insurances which the company should be having. The types of the insurances which the company should have must cover the persona, property, and project works.
The personal insurance cover which the company should be having includes the personal accident cover(Greeno, 2016). This type of insurance cover in most cases offers compensation for permanent disablement, medical expenses, death and temporary loss of income due to the disablement. The personal insurance will in most cases cover the accidents which the workers or employees of the Metharom construction company are involved in.
Construction works insurance to cover a type of insurance cover which is taken by construction companies to cover specific construction projects, or in some cases, it is taken annually to cover some projects. The extent to which the insurance covers are arranged by the head or principal contractor and usually provides access to two sections of the coverage (United States. Dept. of Labor, 2011). The first section of this type of the insurance cover covers the material damage which occurs on the job at the site while the second section covers the products and the public liability for the third party property damage or the third party body injuries which might arise from one’s negligence.
Owner Builder insurance is a type of insurance which covers the properties. Metharom Construction Company was to consider having this type of the insurance cover to ensure its property such as the buildings and machinery (Chudley, 2016). This type of the insurance cover warranty the homeowners; construction liability, Volunteer workers and accident-free for the workers.
