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Contractor insurance
Individuals and companies often require the services of contractors for the repair or construction of buildings. It is observed that most people tend to hire a contractor who extends the lowest bid. However, it is essential to consider a few important things before hiring a contractor for your work. One such critical norm is to ensure that the contractor has proper insurance coverages for workers’ compensation and general liability. These insurance policies confirm that you are not liable in case of the occurrence of any injury or damage while the contractors and his employees are at work on your property.
To check if the contractor has insurance or not, you will have to contact the relevant insurance company and ask for the appropriate certificate.
Follow the given steps to learn about the insurance status of a contractor:
- Firstly, ask the contractor to give you details of his insurance agent and carrier. Besides, you will require some basic information about the contractor for verifying with the insurance company. So, it is advised to have a business card from your prospective contractor.
- Thereon, please verify the accuracy of his insurance company’s or agent’s details from the internet or a phone directory.
- Finally, contact that insurance carrier or agent and request them to show you the contractor’s required insurance certificate. Look carefully to check if it proves that the contractor does have insurance coverages for liability and workers’ compensation.
Note: Owing to your contractor’s fault, if some damage occurs to your property and someone else’s, you can be held liable by the other person. However, this may not be the case if your insurance policy states otherwise. Further, you can obtain this kind of coverage after paying the requisite additional amount.
Do contractors need professional indemnity insurance?
Contractors need to purchase Professional Indemnity Insurance because this insurance protects contractors from financial loss due to faulty design, poor advice, or unintentional copyright infringement. In addition, professional Indemnity Insurance covers contractors’ legal defense fees and the cost of compensation they may owe due to damages.
Are subcontractors covered under contractors’ insurance?
Usually, subcontractors are not covered by standard traditional insurance. Therefore, contractors need to check are all the subcontractors are protected by their own insurance policies.
How much is contractor insurance?
In the USA, most contractors and construction businesses choose general liability policies ($1 million per-occurrence limit and a $2 million aggregate limit) where contractor insurance is in the price range from $400 (average insurance for locksmiths) till $3600 (average insurance for roofers).
From 2022.,Jason writes educational insurance articles for Promtinsurance.com.
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