Summer provides some of the busiest months when it comes to home and business repair and remodeling. If you have plans to spruce up the homestead or your business, chances are you are shopping around for a reliable contractor that is going to turn your plans into reality.
As you look around for that contractor, one thing you may not be keeping in mind is whether or not that contractor is properly insured for the work they can do on your property. Not verifying the insurance of your contractor could prove to be a big mistake on your part as a property owner.
Why is it important? It’s all about liability. If a contractor you’ve hired is uninsured and damages part of your property, you could be on the hook to pay for the damages yourself. The same is true if an uninsured worker is injured on the job. Make sure any contractor you hire is not only credible but fully insured to take care of any issues that may arise on the job site.
What Insurance Should a Contractor Have?
In most states, Kansas and Missouri included, all contractors are legally required to have two kinds of insurance coverage: Liability and Workers Compensation.
Commercial general liability insurance offers coverage against claims made by third parties. These could be claims for physical injury or property damage that happened during the job. Besides covering the compensation amount of a claim, commercial general liability insurance also covers the legal expenses that the insured incurs during litigation.
Workers’ compensation insurance makes sure that employees are covered in the event of an accident on the job site. This may include coverage of medical treatment, disability income, or rehabilitation costs. It also covers compensation to families for work-related deaths. Workers compensation insurance is vital for the protection of employers from lawsuits that may be filed by injured workers or the families of deceased employees.
What Other Types of Coverage Might a Contractor Have?
While commercial general liability and workers’ compensation are the bare minimum, many contractors may carry other insurance options as part of their coverage. These other options may include:
- Professional Liability
This coverage protects contractors against claims made by clients who have experienced financial loss due to the work the contractor has been hired to perform.
- Builder’s Risk
This coverage protects the structure on a job site as well as materials that are being used. This could include coverage from damage or theft.
- Pollution Coverage
This coverage protects against third-party claims for property damage or bodily injury for accidents on site that involve pollution. Pollution-related incidents are often related to demolition jobs and paving projects.
Your contractor should have an insurance package that is unique to the specific needs of their particular business and the employees they cover.
What Can You Do As a Home or Business Owner?
There’s an old saying that an ounce of prevention is worth a pound of cure. That logic can definitely be applied to having contractors on your property for repairs or remodeling.
Before you sign the contract with your contractor, make sure to see any certificates of coverage that they. This allows you to verify they will be fully insured while on the job. Also, check your own insurance policy to familiarize yourself with any negligence liability you may be responsible for.
Before work begins, remove any safety hazards you may have on your property to minimize risks while the contractor is working. This could include any fallen branches, wet leaves, or other items outdoors or indoors that may be obstacles to the contractor and his employees.
Finally, ask for recommendations from friends and neighbors for safe, reliable contractors. Also, be sure to ask the contractor for customer reviews and testimonials that will vouch for their ability to do a job safely.
Midwest Comfort Homes are trusted contractors who want to see your business repaired and operational in as little time as possible. Midwest Comfort Homes proudly serves a 40-mile radius of Kansas City, Mission Hills, Prairie Village, Roeland Park, Westwood, and Leawood, KS. They also serve Waldo, Brookside, Columbus Park, Riverside, Overland Park, River Market, and Volker, MO.