Blog

By Joe Harrington 21 Feb, 2024
Does the carpenter building your dream kitchen have insurance? What about the electrician wiring your new family room or the roofer installing a new roof on your house? You should always verify if your hired contractor is properly insured before starting a new project on your property. If a project fails or any damage is done to your property, the insured contractor is the only one who will potentially provide financial coverage. If a contractor is injured on your property, a workers compensation insurance policy will provide coverage for the medical claims and possible lost wages. It is always best to request a Certificate of Insurance. A certificate of insurance is a document created and issued by an insurance company or agency that is used to verify the insurance coverage of an individual or company. As a homeowner, you should not feel uncomfortable asking for a certificate of insurance. Asking for a certificate of insurance is a common request. Once requested, you should receive the certificate of insurance in one or two days. Ensure the validity of the contractor's insurance by having the certificate sent to you directly from the insurance office. Once you receive the certificate of insurance, you should pay close attention to the following: 1. Confirm the name of the insured matches the name of the contractor that you are hiring. 2. Verify the description of operations. For example, if a contractor is installing a new roof on your house, the description should be roofing or roofer and not carpentry, painter etc. 3. Verify that the policy dates of the insurance policies will not expire before the completion of your project. 4. Ensure that the contractor has general liability insurance including completed operations liability and workers compensation insurance. 5. Ask to be an additional insured on the general liability policy. It is important to protect yourself from lawsuits and financial losses, so make sure your contractor is properly insured. If a contractor does not have insurance and cannot provide a certificate of insurance, simply do not hire them. A sample certificate is attached. This certificate is only an example and may not satisfy all the insurance requirements for your specific project. If you have any questions, please do not hesitate to call us at 800-971-0800.
Share by: