When you hire a contractor to work in your home, you could be taking on a risk without even knowing it. To limit this risk, it's important to hire a repair worker who has the proper type of liability insurance coverage. Without this type of insurance, the financial liability shifts over to you and your insurance.
Liability Insurance Coverage
Contractors who work in customers' homes are typically required to carry some type of liability insurance coverage. This type of coverage helps cover any accidents that occur as a result of the work that's done. For example, if the worker drops a tool from the roof and hits someone walking by your house, his liability insurance coverage covers this damage. This way, you don't have to worry about filing a claim with your homeowner's insurance if something happens.
Liability Coverage Limits
When a contractor begins working, he must purchase a minimum amount of liability insurance coverage. For example, your state might have a limit of $50,000 in property damage and $200,000 in general public liability. If the contractor doesn't have this amount of coverage, he's in violation of your state's rules. Although this minimum amount of coverage may not cover all of the damage caused by the contractor, it at least provides some payment for damages, and you can file lawsuits for any additional costs.
Getting a Copy
When you hire a home repair worker to come to your house, get a copy of the liability insurance coverage that he carries. Legitimate contractors should be willing to give you a copy of this information. This way, if an accident happens on your property, you can simply contact the contractor's insurance company to make sure that the claim is being handled. Without this information, you have to rely on the contractor's word that it's being handled.
Considerations
Besides asking for a copy of the general liability insurance policy, you should also find out if the individual has workers' compensation insurance. This type of insurance protects you if the contractor or a member of her crew is injured while on the job. If the contractor doesn't have this type of insurance, she may sue you for damages. In that case, you would have to file a claim with your homeowner's insurance or pay any judgments out of your own pocket.
Tags: insurance coverage, liability insurance coverage, liability insurance, liability insurance, type insurance, amount coverage, being handled
