Imagine this, You’re finally getting around to replacing your roof, and you’re looking for a great contractor to do the job. The one you find in Germantown with the lowest bid isn’t insured, but they have a great reputation, so you go with them.
During construction, however, an accident occurs, and one of the contractor’s employees falls off the ladder.
What now? You realize you didn’t hire a contractor with insurance, so is this your responsibility?
Situations like these can be scary. As the homeowner, you’re often left as the liable party, which can be costly and cause massive legal issues.
So what do you do?
Stay Safe by Hiring Only Insured Contractors
To help protect yourself from liability issues when workers are injured on the job, you need to hire contractors who are properly insured. But this can be a challenge in and of itself. What coverage should they carry? And how much coverage is enough?
In this article, we’ll outline the insurance you should require when hiring contractors for home renovations, construction, and other work.
Four Types of Insurance Contractors May Have
There are four types of insurance that contractors may have. The first, Workers Compensation insurance, is required for all forms of employment, from the extremely safe to the extremely risky. It provides medical expenses and lost wages for employees who are injured on the job. Still, requirements vary by state.
Another common type of contractors insurance is builders risk. Builders risk insurance covers the operations of a contractor for a particular duration on a specific property. It will cover property damage, including damage to building materials that are still awaiting use. Alternatively, builders risk insurance may be carried by the property owner to protect their interest in materials.
Commercial general liability is a third type of insurance you may encounter with contractors. This form of insurance is much like workers comp insurance because it covers personal injuries, but it also covers property damage.
Finally, for work vehicles and the accidents that may occur to them or in them while driving on the job, there is commercial auto insurance.
Special Note: Get Verification With a Certificate of Insurance
When your contractor tells you that they have insurance, remember that you need to ask for a Certificate of Insurance, which verifies their claim of having insurance.
This is not a prying or rude question, nor one that your contractor will not expect. It’s a standard question that helps you, the homeowner, verify for your own records that the contractor indeed has the insurance they claim to have. The document will be provided to the contractor by their insurance company and will include the dates that the said insurance is valid. Be sure to check these dates so that you can ensure they coincide with your home renovations or construction.
Frydach Insurance Can Help You Stay Protected
Finding the right contractor with the right insurance coverage can be a tricky business. At Frydach Insurance in Germantown, WI, we want to help.
Our agents are highly skilled and knowledgeable of the insurance contractors need to make sure homeowners are covered. We would be happy to sit down with any Germantown area homeowners looking to make renovations in their home. We’ll take a look at the coverage your contractor has to make sure it is protective to you and your family.
Give us a call today or feel free to stop by our office to learn more!