What you NEED, before you PROCEED!

Here in Connecticut, before hiring a contractor, you need to know they have the proper insurance.  Specifically, the contractor needs ALL THREE of these coverage types to be a safe bet:

Screen Shot 2016-05-09 at 8.44.30 PMType #1:  GENERAL LIABILITY is overall coverage, like car insurance.  Some call GL “contractor liability insurance”.

Type #2:  COMPLETED OPERATIONS COVERAGE continues after the contractor finishes your project.  It covers product failure damage, water damage from plumbing failures, improper construction method damage, etc.  This coverage stays intact for one year (or more) after project completion.

Type #3:  WORKMAN’S COMP means a company’s employees are fully insured.  Not all remodeling contractors purchase workman’s compensation insurance.

Fact of Law:  A company WITHOUT workman’s comp insurance DOES NOT have legal employees.  This means they can offer lower prices, but if someone is injured, YOU are at risk of being responsible.  In other words, you could be sued if your contractor doesn’t have workman’s comp.

Right now, you’re probably thinking: “Oh, man! Now I have to ask the guy for THREE different policies?!  The answer is…NO!  Instead, you ask to see their “ACORD Certification”.

The good news:  ACORD Certification simplifies the whole process

The ACORD CerScreen Shot 2016-05-09 at 9.43.30 PMtificate shows ALL coverage.  You’ll see the company’s general liability info, completed ops coverage dates and workman’s comp coverage amounts, ALL ON ONE SHEET!

By the way, ACORD is the accepted form of insurance certification throughout the USA.  A non-profit organization serving insurance agencies worldwide since 1971, ACORD stands for Association for Cooperative Operations Research and Development.  The ACORD Certification shows ALL current insurance coverage of your potential contractor, with coverage limits and expiration dates.

If ANY of the 3 types of coverage are missing, it shows a gap in your contractor’s insurance, and you’re best advised to avoid anyone with incomplete coverage.

Shake hands, then get your newly-issued ACORD Certificate in minutes!

Before you agree to hire any contractor, they can call their agent, and literally within minutes (during normal business hours M-F, 9a-5p), you’ll get via email your free, newly-issued ACORD certificate from their insurance provider.

This newly-issued certificate shows YOUR name & address PLUS the contractor’s name & address with coverage info, all for your project.

NOTE:  This ACORD certificate is the ONLY actual proof of coverage.  A cancelled check is NOT proof.  A quote sheet is NOT proof.  Only ACORD Certificates prove who is covered and the date range.  There is no charge for this certificate.

Answer to a commonly-asked question:  “Yes, the general contractor’s insurance coverage DOES cover any sub-contractors doing work on your project.”

Now that you know what you NEED in order to PROCEED, the insurance angle of your project can move forward quickly and easily!

–Keith

Ask Keith a question:

Got a question about insurance?  Just click here.  OR, ask any question about remodeling, too.  You’ll get an an expert answer right away from Keith Santora, president of HRD, Handyworks Remodeling and Design in Wallingford, CT.  Ask away.  Keith is ready!