I recently bought a new house and started in on some remodeling projects right out the gate.
This got me thinking about how I could give some advice to other homeowners, especially when it comes to protecting their interests. More specifically making sure they are covered if something goes wrong or a worker gets injured.
As a business owner and contractor myself, I know that I want people working in my home with the proper insurance coverage. I also understand when homeowners hire a contractor, they may just assume the person carries all the required insurance and licenses, but that might not be the case.
That’s why it’s so important to ask what kind of insurance they carry.
RetroFoam of Michigan is on a mission to educate homeowners, so as part of that mission I have put together the insurance information you need before your project gets started.
To protect myself from personal liability or having to file a claim on my personal homeowners’ policy, I like to make sure they carry both general liability and workers’ compensation policies.
Whether your contractor is a one-person operation or has dozens of employees if they are in the construction business, they need to have insurance not to just protect themselves, but to protect homeowners as well.
Now we’re going to dive into the most important insurance requirements and a couple of bonus ones.
It’s important to ask your contractor if they have insurance, but it’s also important to know why they should have general liability and workers’ comp.
Let’s take a look at both kinds of contractor insurance requirements, what they cover, and what that means for you. I even threw in a few bonus insurances for good measure.
General liability insurance will protect you if accidents happen during the project.
This includes damage to your property and if you or another third-party gets injured.
The purpose of making sure they have general liability is if the contractor doesn’t and they damage your property you will likely have to pay for the repair or file a claim with your homeowners’ insurance.
Workers’ comp covers the contractor if one of their employees gets injured on the job.
The workers’ compensation policy will pay that employee’s wages and medical benefits. It will also prevent that employee from being able to sue you directly.
The purpose of making sure the contractor has a workers’ compensation policy is because if they don’t and one of their employees gets injured while working on your property you could be held responsible.
These insurance policies may not be required where you live, but they are good to be familiar with just in case.
Now that you know what to ask your contractor about their insurance coverage, there are some other things that could be helpful to ask them about.
Ask for references from homeowners they have worked with in the past, ask about their experience with the work you’re hiring them for, read their online reviews, and make sure they are licensed to do the work you’re hiring them for.
I hope you found this helpful. Below you will find some articles that will help you even more as you remodel your home. While they are focused on insulation, they can be helpful no matter what kind of contractor you’re looking to hire.
How to Find and Hire the Best Residential Insulation Contractor for Your Project
Hiring an Insulation Contractor Problems: 6 Tips to Avoid Disaster
Insulation Contractor Vetting Checklist: What You Need to Look for Before Signing the Contract