What would you do if the contractor you hired to repair your roof suddenly fell and broke their arm? While you can rely on your homeowner’s insurance policy to kick in for most accidents around your home and outdoor property, in this case, you may be left without coverage. Whenever you hire a contractor, you should make sure that they have proper insurance coverage in place to help pay for damages in situations just like this.
Because they work in such a high-risk industry, all general contractors need to invest in comprehensive insurance coverage to protect their employees and their bottom line in the event of an accident. But in some cases, contractors will skip important insurance coverage to try and save a few bucks. While this may sound like a great idea to some contractors, it can cause major issues for the homeowners that hire them. To prevent paying out-of-pocket after an accident on your property, it is up to you to make sure every contractor you work with has the right level of insurance protection.
Why is Contractor’s Insurance is So Important?
It is common for homeowners to hire contractors to complete everything from small tasks to big renovation projects around their homes. A good contractor can help to assist with your home maintenance and repairs no matter the time of year, but everyone from your HVAC technician to your plumber and landscaper is at great risk of becoming injured or possibly damaging your property while they’re on the job.
Luckily, even with the most basic general liability insurance policy, the contractors that you work with can rely on an added layer of protection to help cover damages if they damage your property. However, depending on the type of work your contractor offers, additional coverage options may be necessary. Some of the most common types of insurance needed by general contractors include:
- Workers’ Compensation
- Installation Coverage
- Commercial Auto
- Equipment and Tool Coverage
How to Verify Your Contractors Have the Right Level of Insurance Coverage
Homeowners should never just assume that the contractors they hire have insurance. As you research the perfect contractor to tackle your next big home project, it is up to you to make sure they are carrying proper insurance. Once you’ve narrowed down your search, ask your contractor to show you proof of their coverage with a Certificate of Insurance. But keep in mind that simply showing a certificate doesn’t mean that it is up-to-date. To verify the validity of the certificate, you should personally contact the insurance provider listed.
Don’t Rely on Your Homeowner’s Insurance Policy
Even the most comprehensive homeowner’s insurance policy will not pay for damages that are caused by a contractor. Because you invited them to work on your home, you will likely be responsible to cover the costs for repairs, medical bills and/or lost wages on your own.
Working with Reputable Contractors Can Save Your Bank Account
If your contractor doesn’t have a proper insurance policy in place, you could be facing a very big and expensive problem. So take the time to make sure that anyone you hire has current and sufficient insurance coverage. Want to learn more about the importance of investing in total insurance protection? Call (920) 739-6241 in Appleton or (920) 788-4131 in Kimberly to speak with one of our friendly agents at Thiel Insurance Group or simply visit us online to request a free quote today.