Let’s say you and your spouse are planning a large addition off the back of your home, so you hire a local contractor to take on the job.
At first, everything is coming right along. However, mid-way through the project, a large beam falls on one of the contractor’s employees. He is rushed to the hospital in an ambulance and requires several surgeries and long-term rehabilitation.
The employee’s family now comes to you, inquiring about your insurance. The contractor employer did not have insurance, and the accident happened on your property after all. It was your project he was working on.
What are your responsibilities in a tragic situation such as this — are you really liable because it was your property?
Even though you had no hand in the accident, the answer could be yes.
Protecting Yourself by Hiring Insured Contractors
Hopefully, something like this never happens to you. However, no one can know the future and what accidents may or may not occur. Therefore, the only way to know you’re always protected from liability cases like this one is to hire insured contractors. Otherwise, you’re putting yourself at risk for paying tens of thousands of dollars if someone is injured while working on your home.
In the guide below, we’ll tell you what insurance you should look for in the contractors you hire.
The 4 Main Types of Contractors Insurance
Commercial General Liability Insurance: Standard Personal Injury & Property Damage Coverage
General liability insurance protects any type of business (including contractors) from accidents on the job that cause injuries or property damage.
Workers Compensation Insurance: Personal Injury Coverage Required by the State
In the state of Arizona, workers compensation insurance is required for all businesses, including sole proprietors, as long as they regularly hire or employ a minimum of one employee. The employee(s) may be full-time, part-time, a minor, an alien, or a family member.
Workers compensation provides medical coverage and paid lost wages to employees who are injured on the job.
Business Auto Insurance: Auto Coverage for Businesses
Business auto coverage protects businesses and their employees with auto coverage for company vehicles and on-the-job driving.
Builders Risk Insurance: Property Damage Coverage for a Single Building Project
Lastly, builders risk insurance is property damage insurance that covers a select property during a construction project. It usually also covers materials that are on the job site during the project.
Requesting a Certificate of Insurance
As a final note, always request to see a copy of the contractor’s certificate of insurance when a builder tells you they’re covered. This document is provided by the insurer to the insured to signify legal documentation of the claimed insurance. It also denotes the dates that the insurance is valid for, so make sure to check the timeframe and be sure it fits your proposed home renovations.
Choose an Insurance Agency You Can Count On
Vanyo Insurance Group in Scottsdale, AZ is here to assist you in finding a contractor in the area with ample coverage limits.
When having improvements done on your home, it’s important to know that you will be fully covered in the event of an accident. Our knowledgeable agents will take a close look at the contractors you are considering and their insurance policies to be sure it’s adequate.
Also, speak to us about your current homeowner’s insurance plan and the renovations you’re making to your home. It’s possible your plan will need updating to reflect the new changes.
At Vanyo Insurance Group, our agents are always here and ready to help. Give us a call today, or feel free to stop by at your convenience.