If you want to be sure that your contractor has the right insurance coverage for you, then it is essential to verify the contractors insurance. After all, even a slight mistake or oversight can lead to huge financial losses for you. One should never assume that a contractor has business insurance. Therefore, it is essential to ask for each prospect’s insurance coverage. Apart from the right liability insurance cover, one should also check the expiry date of the insurance policy. An expired insurance means getting no coverage at all.
If your contractor has no contractors insurance, those minor mistakes become a nightmare and can lead to massive losses through repair costs, property damage and more. Therefore, it is very essential to check out the insurance before signing a contract. It would be a mistake to rely on your homeowner’s insurance policy as it will not cover any damage that is caused by a contractor. This is because the insurance company will look at you who invited that contractor into your house and will look at the damage as intentional. However, one can always update their homeowner’s policy before calling in the contractor for any kind of repair or renovation project to get more protection.
If getting a contractor to work on your house, make sure he has the right cover and carries his or her own insurance. Again, it would be wrong to assume that a single insurance policy will offer protection against all risks. Study the insurance carefully as contractors insurance can vary and will offer protection against a variety of risks. The licensed and bonded contractors enjoy a guarantee that in case you don’t find contractor’s work up to state code or if it fails to meet safety regulations, the insurance company is responsible for paying for any damages.
Inland marine insurance: coverage offers cover for business assets that aren’t stored in a fixed location. For all those contractors, this means their work tools and other gear that they often need to carry from one place to another for work. This insurance is often referred to as contractor’s equipment and builder’s risk and offers cover to their work equipment. The bottom line is that just by knowing that a contractor has insurance is not going to be enough. Homeowners should make complete verifications and hire them only of completely satisfied. This is essential to keep their property safe and protected.