If DIY is a no-can-do, then you probably hire contractors to do work on your house. As part of your research, you will want to consider potential contractors’ credentials—including their insurance coverage.
In addition, you should ask for examples of similar work and projects that they have done, including any written testimonials or website showing such work.
Though we often go online to do simple searches for contractors, word of mouth is still a great way to find tried-and-true handymen for odd jobs around the house, as well as bona fide contractors such as remodelers and appliance repairmen.
When you ask prospective contractors for a written estimate with details on the scope of work they will do, remember to request a current certificate of insurance. The insurance certificate proves that the contractor or home repair company carries current general liability insurance. That policy will help pay costs if the contractor’s work is faulty or causes bodily injury or physical damage to your house.
In addition, a contractor should carry a workers compensation policy to cover injuries to workers. Why is this important to you, the homeowner? Well, if your hired help falls while working on a ladder at your house and does not carry workers compensation insurance, you might be found liable for the costs for this injury.
To protect yourself, make sure that the contractor’s certificate lists a workers compensation policy with current effective dates. If you are unclear about where your homeowners insurance protection ends and your contractor’s commercial insurance begins, touch base with your insurance professional for a quick review of your policy and advice on getting the best coverage for your project.
