Whether you’re hiring a contractor for a small, large, or ongoing project—like yard work or cleaning services—it’s always a best practice to consult your insurance agent at Brunswick Companies first. Our team of specialists can make sure you have the coverage you need, as well as help you be certain your contractor has the right insurance to keep your property safe during the project. For example…
What does Licensed, Bonded, and Insured mean?
Licensed
It varies by state, but most contractors and their subcontractors will be licensed in their trade—think electricians and plumbers. To find out if your area requires licensing for your particular project and contractor type, try the Angie’s List License Check Tool.
Bonded
Being bonded often refers to an employment dishonesty bond, which means that you have an avenue to recoup the monetary value of a stolen item after a theft is committed by the contractor’s employee. Arrest and conviction prior to being able to collect on the bond is common.
Insured
All contractors should also have general liability insurance and workers’ compensation in place before beginning the project. The general liability insurance covers instances like contractor-caused damage to your property. The workers’ compensation covers injured workers for lost wages, medical services, or death benefits, regardless of who was at fault. If the contractor doesn’t have workers’ compensation, you might be liable for any injuries or deaths on your property.
What does it mean to be a Named or Additional Insured?
You should insist that your contractor add you as an “additional” or “named” insured on their general liability insurance policy. This ensures that you are protected from legal costs and judgements in the event of things like a bodily injury or property damage claim as the result of a jobsite accident. It also means you will be notified by the insurance company if the contractor’s coverage lapses due to non-payment or is canceled by the contractor.
Get a copy of the contractor’s Certificate of Insurance
By having a copy of this document, you will know the insurance company name, policy number, and policy limits that the contractor carries. You will be able to contact the insurance company directly to verify the coverage and make sure the policy is still in effect. Once you are a named/additional insured, you should also see your information on the certificate of insurance.
Brunswick Companies Can Help
As always, Brunswick Companies is here to help you understand your coverages and to review the insurance and bonds of your contractor to ensure you are properly protected. Give one of our specialists a call today at 800-686-8080.