Have you ever thought about what would happen if your HVAC technician got hurt while inspecting your system? What would you do if your landscaper accidentally backed into your garage? Even the most experienced and trusted general contractors can fall victim to an unexpected accident on the job. And if they get injured or somehow damage your property, you could be stuck paying for damages if they don’t have the proper insurance coverage. While your homeowner’s insurance policy is a great way to protect your home and assets, working with a reputable contractor that has invested in their own insurance coverage is important as well. Keep reading to learn more about the advantages of working with contractors that know the value of a comprehensive insurance policy.
What Does Contractors Insurance Have to Do with You?
Whenever you do business with someone else, it is absolutely crucial to make sure that they have proper insurance. Whether you’ve hired a new pool cleaner or you’re bringing in multiple contractors to do some renovation work on your house – you should always ask about their insurance policy and ask to see proof that it is up-to-date. Never take someone at their word when it comes to insurance. A verbal confirmation of coverage will do nothing if someone becomes injured or someone’s property is damaged on a job. If you fail to inquire about contractors insurance and something goes wrong, you could be held responsible for picking up the pieces.
What Type of Insurance Should a Contractor Carry?
Working in the construction industry means that common contractors like painters, landscapers, electricians, roofers and carpenters all have to be prepared for possible injuries and damages on every job they take. With each new project they encounter, they could be facing anything from possible water damage to falling shingles, broken windows, slip and fall accidents and much more. So to protect their employees and your home, contractors should at least carry general liability coverage. With this basic insurance option, contractors and homeowners can rest easy knowing they are protected against property damage and bodily injury claims. However, depending on the type of job and contractors that you are working with, additional coverage options may be necessary.
Some of the other common types of contractors insurance coverage you should ask about include:
- Workers’ Compensation
- Builder’s Risk
- Commercial Auto
- Equipment and Tool Coverage
While many of these insurance policies may be considered optional, workers’ compensation insurance is mandatory in Arizona for any business that regularly employs or hires at least one employee, including sole proprietors. Businesses must carry this type of insurance coverage regardless of the number of workers they have on their payroll or the type of workers they employ. For example, all part-time, full-time, aliens, family members and minors that are employed by a contractor must be protected under workers’ compensation insurance.
Tips from Our Independent Agents: How to Hire a Reputable Contractor
Want to increase your chances of working with a great contractor on your next big home project? Check out a few of our favorite pre-hire tips!
- Find contractors based on personal references from friends and family
- Check out online reviews from previous customers
- Always ask for proof of insurance, even if you’ve previously worked with a contractor
- Don’t be afraid of presenting contractors with a “what if” scenario regarding insurance coverage
Contact The Don Neeley Agency Today
Interested in learning more about the benefits of comprehensive insurance coverage for your home? Call (480) 945-7621 or visit our friendly team online today to request a free quote.
