For your construction project to be truly successful, it must be done with an excellent contractor at the helm – whether a general contractor or professional hardscaping contractor. But, you have to be very discerning when it comes to hiring one. Not only should your contractor have the necessary skills, experience, and equipment, but he must also have the right insurance. Here are the reasons why insurance coverage is a must.
Protection from liabilities
There are many types of contractors insurance out there, but the two insurance policies that every contractor must have are general liability insurance and workers’ compensation insurance.
When your contractor has general liability insurance, any accident that leads to third-party injuries or property damage will be paid for by his policy. Workers’ compensation insurance will cover both the medical expenses of your contractor’s workers who sustain an injury while at work on your project as well as the wages they stand to lose because of the injury.
When you’re hiring a contractor, always make sure that he has both because if he does not, you will be technically acting as the contractor. In this case, you will be held liable for any injury and property damage that occurs during your construction project.
Lower long-term costs
It’s true that a contractor who doesn’t have insurance will likely offer lower rates for his services, which is probably why they still get hired despite not being insured. After all, there is no shortage of people who want to save a few dollars here and there.
However, with an uninsured contractor handling your project, you could end up spending more money in the long run. When there are mistakes in the construction, you’ll have to shoulder the cost of correcting those mistakes (consider the long term issues with stucco!). And if a worker or a third party gets injured in the work area, you are liable to pay for his medical expenses—among other things—out of pocket for as long as it takes the worker to recover.
Don’t hire uninsured contractors
In conclusion, hiring uninsured contractors carries with it a lot of risks. They may come cheap, but the consequences should an accident happen don’t. An uninsured contractor could end up making you the subject of a lawsuit which could bankrupt you when you lose in court. So don’t hire the uninsured: It’s just not worth it.
About The Author:
Rachel Porter is the content specialist for Custom Contractors Insurance, LLC, and Arizona roofing and contractors insurance company. When not writing, she enjoys reading and mountain biking with her friends.