Does Your Contractor Have Insurance?
Never let a contractor do any work on your home, property or commercial space without proof of current and valid insurance. Even a small job can result in serious accidents and damage. If your contractor is not insured, you may be left holding the bag! For example, you may think little can go wrong when hiring a fencing contractor or landscaper, but what if they back into the corner of your home with a bobcat, or dig up a gas line when digging holes for fence posts, who pays for the damage or repairs.
When contractors work on your home this is even more critical. What happens if you or a visitor gets hurt due to unsafe work conditions left by your contractor? What if the contractor causes a fire or water damage? What if a contractor damages other areas of your home that are not included in the renovation? The list of what can go wrong is endless and you need to make sure your contractor is covered for all possibilities – large or small!
When hiring a contractor, there should be no objection to providing proof of insurance prior to signing a contract. Insurance for residential work should cover at least $2 million for property damage and personal injury (for you, your family or any person coming onto your property). For commercial work, $10 million is standard. The amount your contractor has coverage for will vary and it is up to you to decide if you feel this is enough to make you feel comfortable with the coverage should anything happen.
Bottom line… If a contractor cannot provide proof of insurance, don’t let the contractor do anything on your home or property!
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