The economy is improving and remodeling projects are increasing. If you will be hiring a contractor, make certain they are Insured. The contractor should provide proof of Insurance to you in the form of a Certificate of Insurance (COI). The COI should illustrate:
- General Liability Coverage – this will protect you from bodily injury and property damage claims
- Workers’ Compensation (WC)– if an employee of the Contractor is injured on your property and the contractor does not have WC, chances are good the employee is coming after you since it happened on your property.
If they are not insured, it illustrates a lack of business professionalism, and they are putting you at risk.
Here are some Claim examples:
- Deck Remodel: Contractor does not properly install handrail on stairs. A guest of your home is injured when she falls down several stairs due to handrail failure. Due to severity of injury she hires an attorney. When it is determined the contractor is not Insured, claim is pursued against the Homeowner.
- Carpet Installation: Installers are moving furniture around to make room for new carpet. One of the Installers damages your wall mounted expensive flat screen TV
- Upstairs Bathroom Remodel: Employee turned off Toilet Valve, and it broke off (it turned out it was a corroded Pipe). Floods main floor and basement of your home.
With regards to the COI, it is best to ask the contractor to have their Insurance Agent forward the COI to you – if they balk at that and say they can do it, this is a concern – there are some unscrupulous contractors that will develop a false COI. If you are a client and you would like for us to review the COI for you, we will be happy to do so.
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Posted by Dan Hebbeln: firstname.lastname@example.org