Many homeowners in De Pere see the value in updating and maintaining their home. And, they know this often means calling in the pros. Imagine a situation in which you invite a contractor into your home. Do you know what type of coverage they should have?
Imagine hiring a company to install drywall at your home. This could be a specialist or a general contractor. The individual is going about business just fine until he trips, falls off the ladder, and lands on his head. Suddenly, there are emergency vehicles at your home, and the worker has extensive medical bills. Who pays for this? Whose insurance covers these costs and risks?
Insurance Coverage for Contractor Accidents
When hiring a contractor, ensure this party has specific coverage to protect workers when on the job at your home. If the contractor does not, you (and your home insurance policy) could be responsible for paying for the injured worker’s losses. This is an expensive situation that happens far too much.
Your first step should be to verify any contractor you welcome into your home to do work is fully insured and licensed. And, to protect yourself, be sure to call your home insurance agent in DePere, WI to be sure your policy is up to date with ample liability insurance.
What Type of Coverage Should a Contractor Have?
This is one of the biggest questions we hear because many people just do not know. Asking a company if they have insurance isn’t enough. You want to be sure they have adequate coverage to minimize any financial responsibility to you. Here’s a good place to start:
A sole proprietor without employees is exempt from carrying workers’ compensation. This does not mean he or she shouldn’t have coverage, though. If you are hiring just a single contractor, such as a sole proprietor, they may not have this type of coverage, but other liability insurance should be available. In all situations, you want to know employee injuries are not your responsibility.
Commercial General Liability
A commercial general liability insurance plan will provide some protection as well. This insurance policy covers any claims for negligence. It covers claims customers and clients make against the company. It does not outright cover employee injury but helps protect you from any loss you suffer as a result of the company’s negligence.
A builder’s risk insurance policy can also be a good idea when hiring a contractor. It helps cover the property itself when the property is under construction or being renovated. Specifically, contractors’ all risk insurance is a type of coverage protecting against property and third party injury. It helps to protect against any instances in which subcontractors are hurt at your home.
Certificate of Insurance
It is important to see the Certificate of Insurance from the contractor. You do not want to simply take their word for it. Again, this is a simple step to help minimize any financial responsibility you have.
Gather Insight Into the Company
Whenever hiring a contractor for any type of tasks – such as roofing, plumbing, HVAC, or other services – gather insight on the company. Learn about their insurance coverage but also about their reputation. Do they have a strong history of providing good service? Are there any claims against them for negligence or poor quality workmanship?
Work with an Agent Who Can Help You
In every situation, include your insurance agent here at Brian Van De Hey Insurance. Let our team help you find a contractor to help you or let us verify the coverage they have. And, remember, let us take a closer look at your home insurance to make sure it is up to date.