Some Tips That Can Go Wrong With a Home Renovation
Job sites are dangerous. Even under the best management, and while making every effort to be safe, accidents can and do happen.
In the event that your contractor or an employee becomes injured on the job or causes damage to your roof, you’ll want to make sure that they are insured. If you hire a contractor who doesn’t have adequate insurance, you may be held liable for on-the-job injuries and property damage. However, if the contractor has appropriate insurance, the insurer will pay for covered risks.
In other words, owners of construction contracting businesses face a variety of risks, such as damage to their tools or being sued if they made an error in a project. These risks, such as lawsuits, are costly. Without insurance, contractors could face significant costs (such as legal fees) which could hurt their business operations. To strengthen the foundation of their business, construction contractors need insurance.
Insurance coverage is one of the most important tools that contractors can use to manage the many risks associated with construction projects
Some insurance coverage for construction contractors:
Commercial general liability insurance
If there are injuries, fatalities or property damage caused by a construction contractor’s work, they could be sued. Commercial general liability insurance can help with legal fees due to these incidents. For example, if a contractor causes damage to a home during their work, commercial general liability could cover the costs of repair or potential legal fees.
Equipment and tools insurance coverage
From a computer to a clipboard, every business requires tools. Equipment and tools insurance coverage can help contracting businesses cover equipment-rental fees or replacement costs if their tools or equipment is damaged or stolen.
Business property insurance
Construction contractors may run their operations from a specific location. This could be a building they own, a home office or a leased space. Business property insurance can help cover costs if the physical location of the contractor’s business is damaged. For example, if a construction contractor’s office space was damaged in a fire, business property insurance could help with the cost to repair the physical space. If the business owner runs their business from a home office their home insurance policy may not cover a loss.
Is Your Contractor Also Licensed?
Another important question to ask potential contractors is whether or not they have a license. Licensed contractors usually complete high-quality work because they can lose their license if they fail to do a good job. Some cities and provinces even require contractors to show proof of insurance before they receive their license. If you are hiring a contractor to renovate your whole house or any part of your home like kitchen or bathroom, your property insurance might not cover the cost of the renovation if the contractor was not licensed.