You always need to ask about contractor insurance before you decide to hire someone. Insurance is important because it protects the contractor in the event of a disaster. Insurance also protects the client from mistakes that may happen during the project. If something goes wrong during the construction project, the insurance company should pay to fix the damage. At the same time, there are lots of insurance plans out there. What types of insurance should a contractor carry?
All contractors need to have general liability insurance. General liability insurance covers many types of property damage and personal injury. For example, if you enter your home when a renovation project is going on, and you hurt yourself, your contractor’s general liability insurance plan should pay for the medical expenses. Or, if your contractors take out a wall they were not supposed to take down, general liability insurance should pay to replace the wall. The vast majority of contractors should have general liability insurance.
Contractors also need to carry auto liability insurance. A lot of contractors have commercial vehicles they use for work. At the same time, commercial vehicles can still get involved in motor vehicle accidents. Commercial vehicles can also cause property damage. Auto liability insurance is important because it protects the contractor and the client in the event something goes wrong with the commercial vehicle. Ask about auto liability insurance before signing a contract with your contractor.
Finally, a lot of contractors will also carry roof Insurance. General contractors, carpenters, and numerous other types of contractors regularly work on roofs. Unfortunately, if something goes wrong with the roof, this can be an expensive fix. That is why roof insurance is important. Take a look at the details of your contractor’s roof insurance plan before you hire someone to do any work on your residential or commercial roof.
These are a few of the most common types of insurance plans a contractor should carry. Keep in mind that many contractors specialize in certain areas. Therefore, not every contractor will carry every type of insurance plan. If you have questions about what type of insurance plans your contractor should have, ask a trained professional.
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