How to Verify That Your Home Contractor is Currently Insured

When you hire a contractor for your Central New York home project, you might hesitate to ask about their insurance. Many homeowners find this conversation uncomfortable, worried it implies distrust. But verification isn't just a formality—it helps reduce potential costs.

At the Horan insurance agency, we work with contractors throughout Central New York who maintain insurance coverage. They understand that documentation shows their commitment to responsible business practices.

In this article, we'll explain what documentation to request, how to read a certificate of insurance, and why specific coverage types matter for your home projects.

Why Professional Contractors Welcome Insurance Verification

You might be surprised to learn that quality contractors take pride in their insurance coverage. They've invested in coverage to demonstrate their commitment to responsible business practices. When you ask about insurance, you're giving them a chance to show their professionalism.

This also explains why some bids come in significantly lower than others. If a contractor's price is 35% below competitors, the savings might come from skipping insurance coverage. Quality contractors factor insurance costs into their bids to maintain coverage for your project.

Understanding Essential Contractor Coverage Types

Two main types of coverage matter most when hiring a contractor for your home project:

General Liability Protection

General liability covers immediate accidents or damage during the project. Picture a contractor painting your Baldwinsville home's exterior with a spray gun, and overspray damages your neighbor's white siding. Without coverage, you could face costly repairs.

Completed Operations Coverage

A component of general liability, this coverage addresses issues that surface after project completion. Picture this scenario: A contractor installs a deck at your Camillus home. Everything looks perfect when they finish, and you pay for the work. Later, during a Father's Day cookout, you discover the contractor forgot crucial lag bolts in two main support structures.

The deck collapses during your family gathering. Completed operations coverage can address these types of structural failures that appear after the work is done.

How to Verify Insurance Coverage Properly

When requesting proof of insurance, ask for a current certificate of insurance that includes both general liability and products and completed operations coverage. The certificate should include:

1. Coverage amounts for per occurrence limits and general aggregate amounts
2. Your name in the certificate holder box
3. Your address listed correctly
4. The "additional insured" box marked with a checkmark or a "y" for yes

Being an additional insured can provide important safeguards if problems arise. If someone gets injured and sues both you and the contractor, their policy may pay first—including legal fees—before your own insurance enters the picture. This coverage structure can help with potential out-of-pocket expenses.

Don't accept:

• Expired certificates
• Blank certificates
• Verbal assurances
• Promises to provide documentation later

Consider requesting and verifying the certificate before work begins on your property. This documentation can be an important part of your agreement.

Make Contractor Insurance Verification Part of Your Hiring Process

Insurance verification can be as relevant as reviewing a contractor's references or work portfolio. Without it, you might face repair costs or legal fees that insurance coverage could potentially address.

A certificate of insurance shows current coverage and limits—details that can affect your project. A current certificate can indicate what coverage may be available if issues arise.

As an independent agency serving Central New York property owners, we can discuss contractor insurance requirements and coverage considerations for different types of projects.

Click the Get a Quote button below to learn more about insurance considerations for your next home improvement project.