Hiring a contractor for a summer home improvement project should be exciting: a new deck, fresh landscaping, a patio you've been thinking about for years. But before the first nail goes in or the first sod gets laid, there's a question worth asking that most homeowners overlook: Is this contractor insured?
At the Horan insurance agency, we work with homeowners across Central New York who want to make informed decisions about their coverage, and about the risks that come with hiring contractors.
As an independent insurance agency, we work with multiple carriers, which gives us a perspective on these situations that a single-carrier agency simply can't offer.
In this article, we'll walk you through why contractor insurance matters, how to verify a contractor's coverage before work begins, and what happens when that verification doesn't happen.
The Hidden Risks of Uninsured Contractors
Summer is in full swing, and with it comes the bustling season of home improvements. As contractors arrive at your doorstep, armed with estimates, plans, and ideas for your new patio, deck, or weekly lawn maintenance, there's one crucial question that should be at the top of your list: Are they insured?
As a homeowner, it's essential to understand that you're ultimately responsible for what happens on your property. Don't be fooled by fancy truck graphics or professional business cards. These don't guarantee that a contractor carries an active insurance policy. Without proper coverage, you're left exposed to potential liabilities.
Deck Collapses: A Startling Reality
It's easy to underestimate the risks associated with seemingly straightforward projects like building a new deck. However, a quick Google search for “deck collapse statistics” reveals the alarming frequency and severity of such incidents.
If your contractor is insured, any injuries resulting from poor craftsmanship would be their responsibility. But without coverage, you'd be left to bear the consequences, financially and legally.
Verify Contractor Insurance Before Work Begins
Confirming that your contractor carries active insurance is a straightforward process. During the bidding stage, or before any work commences, request a certificate of insurance with you listed as a certificate holder. This is something most contractors are used to and it accomplishes two critical objectives:
- Confirming the policy is active, as an expired or canceled policy cannot produce a current certificate with your name.
- Revealing the actual amounts of liability coverage the contractor carries.
The Added Security of Being an Additional Insured
For added composure, consider requesting to be listed as an Additional Insured, especially for long-term or ongoing projects like lawn maintenance. This status ensures you'll be notified if the contractor's policy is canceled.
While it doesn't grant you authority over the policy, and differs from being a named insured, this extra layer of protection is invaluable. Most insurance carriers won't charge the contractor for this service, though some may impose a small fee. Don't let this deter you. It's a standard cost of doing business.
Subcontractors: An Often Overlooked Liability
If your contractor employs subcontractors, it's crucial to obtain insurance certificates for each of them as well.
If an uninsured subcontractor sustains an injury while working on your property, the burden falls squarely on your shoulders, both financially and legally.
Confirm Your Contractors Are Insured Before the First Day of Work
As a homeowner, it's your responsibility to reduce risk on your property and take reasonable precautions before work begins. By verifying that your contractors and their subcontractors carry active coverage, you're taking a proactive step in looking out for your assets and financial standing.
Don't let the excitement of a new project overshadow the importance of due diligence. Request those certificates of insurance and enjoy the comfort of knowing you've done your part to reduce your exposure to unforeseen liabilities.
In the end, the question isn't whether your landscaper or deck builder is insured, but rather, can you afford the consequences if they're not?
Prioritize verifying coverage and make contractor insurance a non-negotiable part of your home improvement process.
Start Your Home Improvement Project on Solid Ground
As you plan your next project this season, the steps you take before work begins matter as much as the work itself. Verifying contractor insurance is one of the simplest and most practical things you can do to reduce your exposure to unexpected costs and legal complications.
At the Horan insurance agency, we work with homeowners throughout Central New York who want straightforward information about their coverage and the risks they face.
As an independent agency working with multiple carriers, we can help you explore coverage options suited to your situation, whether that's reviewing your homeowners policy or discussing what gaps might exist.
Click the Get a Quote button below to connect with one of our licensed insurance agents.
