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“Fully-Insured” does NOT always mean “fully”.  Learn more now: 

Insurance is a very expensive part of doing honest business.  What people don’t realize is that here In Connecticut, contractors/remodelers with no full-time employees (including themselves) do NOT have to carry Worker’s Compensation insurance!  Many contractors offer lower prices because they have not purchased Worker’s Comp.

When a remodeler or contractor says they’re “fully-insured”, here’s what to ask!

When you see “fully-insured” on their card, their truck or their advertising, you feel safe, right?  Don’t be fooled!  Fully-insured does not always mean fully-insured. Seriously.  That company might simply carry General Liability Insurance, which does NOT cover injury claims.

Ask to see their “Accord Insurance Certificate”.  On the certificate, look for Worker’s Comp coverage in the bottom right-hand corner of the form.

If it’s not there, you are in danger of being responsible for any injuries that may occur.

WHO HAS IT?  FIND OUT FIRST.  Who has insurance during YOUR project?   How does the Sole Proprietor (who has NOT purchased Comp insurance) complete a project when he/she needs other workers? The answer?  They hire other people that don’t have comp either! Now, you might have 3… 4… 5, etc. people on the jobsite during your project, but not a single dollar of Workers Comp insurance in-place. And, what about the subcontractors? Electricians, plumbers, etc. They might not have Comp either! You should ask to see the Accord Cert for them as well.

Don’t let an underinsured contractor stand in the way of successfully completing your project.

WHAT’S IT WORTH?  It may cost a little more, but that cost for the company you hire could be the difference between peace of mind and the worry over unforeseen situations.

Is low price a great value?  NOT if a worker falls on your property and you end up filing a claim with your insurance company, which causes a rise in your rate. Plus — a possible lawsuit could be coming!

I’m sure that scenario, which will follow you for years to come, isn’t considered when choosing solely by price.

–Keith

Learn more about insurance in our other blogs, all written by Keith Santora, president of HRD, Handyworks Remodeling and Design in Wallingford:  
“Remodeling Your Home?  Remodel Your Approach!” To read, click here
“Insurance Assurance: What You NEED, Before You PROCEED!”  To read, click here.