Liability insurance policies are many and varied. Not all are the same and you need to be careful to be sure that the work being done at your home is covered properly by the contractor’s liability insurance policy.
Sometimes we get caught up in our mental safety mode thinking, “my contractor has liability insurance, that is EXCELLENT”. That’s off the check list. But is the liability insurance they have ENOUGH or even the RIGHT liability insurance policy.
You’ve asked, “do you have liability insurance”, and since it’s been answered you are thinking that this is the only question you need to ask – WRONG! The question that you should be asking is, “do you have liability insurance and can I please have your insurance agent’s contact information so I can check to see if the work you are proposing to do at my home is covered by your policy.”
Not all liability insurance policies are created equal. Just because the person has a license and does have liability insurance, does not mean it is adequate for the job he is proposing to do for you.
Is the scope of work he is performing covered by his liability insurance? In other words ARE YOU PROTECTED?
- If a general contractor does all the work personally and does plumbing in your home and you have a flood are you covered under his policy? Probably not.
- If a plumber wires a hot water heater and you have a fire caused by that wiring are you covered under the plumber’s liability insurance? Probably not.
- What if you have hired a handy man to run new wire from the breaker box to a new fan and there is a short in the wiring and there is a fire are you covered? Definitely not.
Liability insurance for contractors was created so the home owner (you) would be protected in the event something went wrong. So make sure you are protected by checking up on your contractor.
In the event something unforeseen does go wrong, just saying that “but my contractor said he had liability insurance” is not going to matter to your home owners insurance provider. If your contractor is not covered you lose!
So are all liability insurance policies created equal? A resounding no! Be sure to check what policy your contractor has and make sure it covers the work you want done in your home.