When you need work done on your home, your top priority is often to hire an experienced contractor who can do the job for an affordable price. However, the price of your contractor should not be the only concern. Every time a contractor works on a new job, a risk is involved. For example, pretend you have hired a contractor to install a new furnace in your home. While installing the furnace, the contractor has an accident that causes permanent disability. Most homeowners assume that the contractor’s insurance will pay for this injury, but this isn’t a guarantee.
Determining Liability
If the contractor has the proper insurance coverage, you won’t typically be held financially responsible for any injuries that occur while the contractor is working on your property. However, if the contractor doesn’t have this type of coverage, you may be expected to pay for medical bills, lost wages, and other expenses.
Some homeowners assume that all contractors will carry insurance because it is required by law. However, some contractors are exempt from state laws that require insurance coverage. In such cases, the contractor may elect not to purchase insurance, leaving customers vulnerable in the event of an accident.
What Coverage Do Contractors Need?
Contractors may need a variety of types of insurance coverage, depending on the specifics of the contractor’s company and the nature of their work, as well as state law requirements. Some of the different types of insurance contractors may need to include:
- Builders’ risk insurance
- Commercial general liability insurance
- Commercial auto insurance
Most states also require certain employers to purchase workers’ compensation insurance, which is designed to provide benefits for employees who become injured or ill on the job. In the state of Wisconsin, the law requires contractors to purchase insurance if they have three or more employees. Employers who don’t fall into this category can decide whether they want to purchase this type of insurance.
Choosing the Right Contractor
Whether you are replacing your roof or adding a room onto your home, you need to know that the contractor you choose is both capable and carrying the appropriate insurance. To find the right contractor for your job, begin by asking your family and friends if they have any recommendations. You can also compare contractors in your area by researching them on the internet and reading online reviews. Try to find a contractor who has developed a reputation for providing superior customer service and good quality work. Before hiring any contractor, always ask to see proof of insurance coverage, regardless of the contractor’s reputation.
If you are searching for a contractor who is both reputable and capable, an experienced insurance agent can help you make the right decision. Your insurance agent can also help you review your homeowners’ insurance coverage after your project is complete to determine whether you need to make any changes to your policy. Contact Couri Insurance Agency today to discuss your home improvement project.
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