After struggling for years with an incredibly expensive insurance plan, I realized that there had to be something that I could do to make things right. I started shopping around for a business that could help me to make things right, and I was able to find an insurance policy that fit well with my budget and my lifestyle. The premiums were low and the coverage was great, which is almost unheard of these days. This blog is all about choosing incredible insurance coverage for you and your family, so that you can enjoy a happier, healthier life. Check out this blog for more information.
Contractors are often promoting their businesses as "bonded and insured." In some states, contractors cannot work unless they are insured. Contractor's insurance is specific to this line of work and this type of business. If you are a contractor, you should always have current proof of insurance. Here is why contractors must be insured, and why you should always show your contractor's insurance card to see proof of insurance before you begin any job.
Your Insurance Protects You and Your Crews
In any other situation where someone steps onto a property and becomes injured, he/she can sue the homeowner for the injury. If a contractor, who is most likely to become injured in the course of working on your home, does not have insurance, and you are the contractor hired to work on your roof, basement, siding, etc., and you become injured, you can sue. It is not a good business practice, and it may result in more than one lawsuit if the person injured is a member of your crew that chooses to sue you as well as the homeowner/worksite. This is why it is illegal in many states for contractors to work without insurance because they would be participating in a violation of consumer protection acts that prevent contractors from suing the homeowners that have hired them to do jobs! The insurance you purchase protects everyone that works for you, as well as yourself, with the exception of subcontractors who are required to carry their own contractor's insurance.
Why You Should Always Show Customers Proof of Insurance
Some contractors will say that they are insured, when in fact, they buy the insurance on a per diem basis after securing a job. This means that the insurance is purchased after customers pay half of their agreed amount for the work the contractors are doing. The insurance may not even go into effect right away, but it is secured in the event that there is an accident.
Sometimes the insurance is cancelled after the contractor finishes the job in order to get a refund for any days of the month that the contractor is not working on a job. Before you are hired, show your insurance card to the customer to verify that you are already insured and that you are not charging the customer for insurance you do not, as of yet, have. This will put the customer's mind at ease knowing that you and your crews are ready to get to work and that contractor's insurance will not be an added charge to the final bill or that you are taking any unnecessary safety risks.
Share18 September 2019
