Making Sure Home Improvement Contractors are Properly Insured

If You Build It...

Do you have home or office improvements planned for this summer? Perhaps you're finally going to build that beautiful patio cover you've been imagining for so long, so you can dine al fresco with friends and family and still have protection from August's blazing sun. Or maybe you're installing new windows in your office, to better let in the warm, fresh, summertime air. No matter the project, it's important for residents to make sure that your contractor has all the right insurance coverage, potentially saving both of you from a lot of headaches and financial hardship.

Types of Insurance

Workers' Compensation Insurance

Contracting businesses with employees should always have Workers' Compensation insurance. This covers the cost of medical bills of any employees of the company who are injured while working on a project for you; it also covers their lost wages should they have to leave the project. If you hire a contracting business without this type of insurance coverage, you will put yourself at serious risk of being sued by anyone who might get hurt on the job.

Liability Insurance

This type of insurance is crucial for contractors including those who are sole proprietors and have no employees, or use independent subcontractors to assist them with projects. Since many contractors may not buy Workers' Compensation insurance, they should definitely have Liability coverage. Liability insurance will provide you with protection in the event that a contractor damages your property or injures him or herself during the improvement project. In these types of situations, the Liability coverage will pay for repairs and/or medical treatment, so you don't have to.

Get Proof!

Before you hire a contractor, ask for copies of his or her Workers' Compensation and Liability insurance policies. Verify that the policies have effective dates that start before and end after your improvement project is scheduled to begin and end. Also make sure the limit shown on the policy is enough to rebuild your home or office and replace the contents in the event that your home or office is damaged or destroyed by the contractor.

Minimizing Risk

In addition to ensuring that your contractor is properly insured, there are other things you can do or, more accurately, avoid in order to minimize your chances of being the victim of unfair litigation.

• Don't take out the building permit for the work to be done; let the contractor do this.
• Don't supply or loan the contractor or crew any materials or tools to be used for the project.
• Don't give the contractor or crew any instructions or tips.
• Don't pay the contractor by the hour.

Choose Carefully

An uninsured or improperly insured contractor can end up doing you and your home or office much more harm than good. You may be excited to get started on a fun summer improvement project, but make sure you take the time to examine the insurance coverage of all your candidates for the job; this is just as important as skill and experience.

For more information about contractor's insurance, call or contact Robins Insurance today.