04 Jun Hiring Contractors with Certificates of Insurance
If you’re hiring a contractor to reshingle your roof, pave a patio area, paint your home, add a deck, or any other project around your home, how do you decide who to hire? Are you comparing multiple quotes? Are you reading their online reviews? Are you asking your friends and family for recommendations? All of this is great for helping you to identify the right person for the job, but do you also ask to see a certificate of insurance?
We know there’s a lot to consider when making these big decisions, but we strongly urge you to add this one other criterion into the mix when making your choice! It will help you identify reputable contractors and will provide you peace of mind, too!
What’s a Certificate of Insurance (COI?)
A Certificate of Insurance (COI) is a statement of coverage issued by the insurance company that insures a business. A COI provides a summary of coverage and serves as verification that a business is insured.
Why does it matter if a contractor has a COI?
A contractor who can provide a COI to you can assure you that losses and damages that they may sustain while working on your property would be covered by their insurance, not you. Additionally, a contractor who can provide a COI to you is has chosen not to cut an important corner.
A red flag for any contractor’s quote would be one that is significantly lower than their competition. Often times, these low-cost quotes are possible because a contractor is choosing not to pay for an insurance policy in order to save themselves money. You may like the quote they give, but you wouldn’t like it so much if something happened and you found out that they weren’t insured! Not to mention, if they’re willing to cut corners on insurance, what other corners might they be willing to cut in the process of completing the job?
If damages or losses occur on your property as a result of a contractor, those losses may be covered by your own homeowners policy. However, each of those losses is subject to your deductible. Do you really want to pay out of pocket for your deductible if you don’t have to? Also, each of those claims you file may result in a higher premium come renewal time!
All in all, you’re not doing yourself any favors by not making sure that your contractors have their own insurance.
What do you need to ask for?
To ensure that your contractors have active policies, ask for a certificate of insurance showing you as the certificate holder with every quote you get!
If you have any questions or concerns, be sure to give SAVA Insurance Group a call at 860-437-7282 today!