If you’re planning to hire a contractor for your home improvement project, there are a number of things you should look for. These include liability insurance and workman’s compensation insurance. You should also check for business licenses. The last thing you want is to be surprised when things go wrong. It’s better to have a contract in writing so that you can be sure that you’re covered in case something goes wrong.
Make sure the contractor has liability and workman’s compensation insurance
Worker’s compensation insurance covers medical expenses when an employee is injured on the job. Many contractors opt out of this type of coverage because it costs too much. However, it is important for homeowners in Massachusetts to ensure that their contractor has this type of coverage, as it protects them from potential liabilities. The best way to determine whether the contractor has this type of insurance is to check their certificate of insurance.
The insurance certificate should be sent directly to you by the insurance company. If it is not delivered via email, try to get a copy from them. It is easy to alter the certificate with photoshop or white-out. In addition, the insurance company can add additional insureds if needed.
Worker’s compensation insurance protects both the contractor and any employees he brings in for the project. This type of insurance will protect the client in the event of injury or damage to property that was a result of the contractor’s actions. For example, a worker might break a finger on the job. In addition, general liability will protect you if the contractor causes a breakdown of the refrigeration system.
Check the insurance limits of each contractor before hiring. The amount of insurance coverage a contractor has will depend on the job size and risk. If a contractor does not have these policies, you could end up paying for damages and medical bills. Check whether the contractor has adequate limits for general liability, products liability, and completed operations insurance.
Contractors should also carry auto liability insurance. Although some contractors may not own work trucks, it is vital for the contractor to have auto liability insurance. If a worker gets injured or suffers an accident during the project, the insurance will pay for the costs of repairs and medical care.
Depending on the state you live in, you should make sure your contractor has workers compensation insurance. It is a legal requirement to carry workers compensation insurance in order to do business in your state. If the contractor does not carry this type of insurance, it could lead to a legal battle between you and the contractor.
Always ask a contractor to provide proof of insurance. Cheap contractors may be able to cut corners when it comes to liability and workers compensation insurance. If the contractor gets injured on your property, you could be sued. This means you could be liable for fees and deductibles that your contractor incurs. It can also cause your insurance premiums to skyrocket.
Check for licenses
Before you hire a contractor, check for licenses to be sure that they’re legally able to perform the work you need. Contractors must be licensed to operate in your state, and you should also check if they are insured. Each state has different requirements for contractors. Some states issue general contractor licenses, while others only issue specialty trade licenses. There are also local regulations.
A contractor’s license will protect consumers, and it’s easy to check whether or not the contractor has one. The state maintains a public record of contractor licenses and complaints. Using an unlicensed contractor may not be caught on the state’s database, and you may be putting yourself and your home at risk.
The rules and requirements for licensing a contractor vary by state, and some require business exams, while others only require a construction experience test. Checking for a license is vital because a licensed contractor will be responsible for coordinating and supervising all aspects of a construction project, from the initial planning stage to its completion. Licensed contractors are also required to maintain adequate insurance, carry insurance, and have references. They may also be required to pass a written examination.
It’s also a good idea to look for surety bonds. Depending on the amount of the bond and the history of the contractor, this type of bond will protect you in case of a problem with the work. In the event that the contractor fails to complete the work, you can go to the bond provider to request compensation. The contractor will need to provide the bond number to you as proof of the problem.
A contractor with licenses is more reputable and trustworthy. Licensed contractors also carry liability insurance and workers’ compensation insurance. They can also sign building permits. Additionally, these licenses give them a competitive edge in the market. As a result, more homeowners are choosing to hire licensed general contractors.
Check for workman’s compensation insurance
If you’re a contractor, you should check for workman’s compensation insurance. Although it isn’t a legal requirement for contractors, some clients insist on it, and it may supplement your health insurance. In the event of an injury, workman’s comp insurance will protect you and your business from financial risk.
You can check for workman’s compensation insurance for contractors on the New York Workers’ Compensation Board website. The website will list the insurance company, the subcontractor’s employer and the effective dates of the policy. In addition, it will tell you if a subcontractor is covered in your state.
Regardless of how small the company, it’s important to check for workers’ compensation insurance for contractors. A standard workers’ comp policy will not cover longshore or harbor workers. Subcontractors are often excluded from coverage, and a subcontractor’s workers will need to prove negligence or work-related injury. This could be a lengthy, expensive process.
