When you hire a contractor to work at your house or your business, you take on some additional risk.
The contractor’s actions can directly impact you. You could be dragged into any problems he creates on your property.
If the contractor has insurance, the chances of you being dragged in go down. But if the contractor’s not insured, then you become the target.
If he damages someone’s property, you could be responsible for repair or replacement. If he hurts someone, the injured party is going to sue you, too…anywhere they can get money.
That’s why you always…without fail and without exception…want to make sure the contractor is insured before they set one foot on your property. Here’s what to do…
- Request a “certificate of insurance” when you hire the contractor. This is a one-page document prepared by the contractor’s agent or insurance company that shows what insurance he or she has. It also shows that it’s been issued to you. Only the contractor’s agent or company can produce a certificate. So, if the contractor pulls one out of his briefcase for you, beware! That’s a red flag that he may not really be insured anymore. Some contractors have been known to reproduce their own certificates after canceling their insurance. Therefore…
- Always call the agent or company on the certificate and verify the policies are actually in force. You might be surprised by what you find out!
- Then, call and verify again the day before the job is supposed to start.
If the contractor dropped the insurance, drop him as your contractor. Otherwise, you guarantee that his problems will become yours.
We have lots of contractor friends and clients. They’re upstanding business people who make sure they invest in insurance to protect themselves and their customers. Make sure you work only with those kinds of people.
Please call the Gannon Insurance Agency at 215-891-9990 to get more information on Auto, Home, Business & Life Insurance or reach us online at www.gannonagency.com.