As a homeowner, at some point in time in your homeownership you’re going to have to hire a contractor.
Is your contractor insured?
Your best defense as a homeowner is to do your due diligence when hiring contractors. Don’t be a afraid to interview them and ask questions. And be sure the contractor is insured.
Ask your contractor for a Certificate of Insurance. This shouldn’t be an offensive question. The point is if something goes wrong, you know he/she carries insurance. This is a must before work begins.
What is a Certificate of Insurance?
A Certificate of Insurance (COI for short) is an overview of that individual (or business) insurance policy.
The one page form will reflect his/her policy inception date and expiration date, coverage limits, which insurance company provides what.
There are two specific things to look for on a Certificate of Insurance:
- General Liability
- Workers Compensation
If your contractor causes bodily injury or property damage to a third party.
Bodily Injury Claim Example:
Your contractor leaves an extension cord in your yard. You don’t see the cord. You trip over it breaking your arm.
Property Damage Claim Example:
You hire an electrician to do some work in your kitchen. A few days after the job is complete your kitchen catches fire. The investigation deems the electrician negligent.
You want your contractor to carry at minimum General Liability limit of $1,000,000.
If your contractor or his/her employees get hurt on the job Work Comp will take care of their injuries. If they miss work for a period of time due to the accident, Workers Compensation will take care of lost wages.
We know you’re a hard working American. We don’t want to see your pocketbook take a it.