Imagine you’ve hired a roofer to replace the shingles on you house. Everything’s going fine until one of the roofers accidentally falls going down the ladder and is disabled.
Such an incident is rare, but it can happen. And when it does, you’ll be left with a lot of questions as the homeowner. First of all, what are your responsibilities in this situation? Will your insurance cover it? How does the process work?
Below, we’ll go over everything you need to know about what insurance contractors should carry so that you’re not left liable for on-the-job injuries or other damage. While it may seem that a situation like the one above couldn’t be something you need to worry about, sometimes it is. We’ll help prepare you for such an unfortunate situation and offer you better protection in the process.
Asking Your Contractor if They Have Insurance
Anyone who hires contractors to do work on their home should ask if the contractors carry insurance. This is a standard procedure, which your contractors should expect.
If you get an affirmative answer from a contractor, make sure you back up their response with paper documents. Do this by asking for what’s called a certificate of insurance. This is a document provided by the insurance company that outlines the insurance the contractor has and states the dates that it covers. Always take a look at the specific dates on the document to ensure that the dates of your construction or renovation fall within them.
When you ask for insurance, contractors may reply with one of the following insurance types:
- Workers Compensation
Workers compensation is required by the government in most cases and mandated by states individually. This form of insurance covers lost wages and medical expenses for employees who are injured while working.
In the state of Indiana, partners, sole proprietors, and LLC members are excluded from needing workers compensation coverage. On the other hand, all independent contractors who are in the fields of construction and building must be certified by the Indiana Workers Compensation Board. Their injuries will not be covered under workers compensation.
- Commercial General Liability
This is the type of insurance that you’re bound to run into most of all. Most contractors should have general liability insurance, and you should look for it when hiring contractors and getting estimates. It covers medical expenses and expenses for property damage in the event of an accident.
- Commercial Auto
Commercial auto coverage takes care of things like liability issues, medical expenses, and auto damage in the event of a car accident while on the job. It’s similar to personal auto coverage but made for businesses and sole proprietors.
- Builders Risk
Lastly, builders risk insurance covers the property that is being worked on for the duration of the work. In some cases, it will also cover the materials being used on the job site, even while they are still waiting to be installed or used.
Select an Insurance Company That Will Work for You
Luxor Insurance in Fishers, IN is happy to help you hire a contractor who has adequate coverage. We understand all aspects of insurance and are well-versed in what you should be looking for in a contractor’s coverage.
We’ll also help you update your homeowner’s insurance policy to reflect the new changes you’ve made in your home. In some instances, renovations are made without additional insurance, and when disaster strikes, homeowners are left with extensive bills because of coverage gaps.