Remodeling? Don't Get Caught with Your Pants Down.

Backyard Escapes 08.10.14
Make sure your contractor has a Certificate of Liability Insurance

Homeowners, beware: nobody should step on your jobsite without a Certificate of Insurance which has been checked and verified! If you are doing business with a service company that will be working on your premises, you should first make certain that the company has sufficient liability insurance. If work will be performed by the company's owner himself, without other employees, a general liability policy is sufficient. However, if the owner has employees that will be working onsite, workers' compensation insurance is required.

The best way to obtain the Certificate is to have the service company's insurance broker forward the Certificate to you. The Certificate should name you, with the jobsite address, as the Certificate Holder and should name you as the "additional insured." This Certificate will give you proof that coverage is valid, as well as provide you with protection for yourself and 3rd parties in the event a 3rd party sues you due to negligence of the contractor. It will also inform you of the amount of insurance coverage provided so you may determine whether or not the coverage is sufficient for your needs. (For more information, contact your insurance broker.)

  • Southern Trillium LLC
    Southern Trillium LLC Stone Mountain, GA
    Just as info. There is typically no cost involved in having a Certificate of Insurance issued with the recipient's name and address on it. But to be listed as an additional insured will incur fees, possibly around $100 for each issuance. So, as a
  • Miriam I
    Miriam I New York, NY
    Thank you for this!
  • Jeanette S
    Jeanette S Atlanta, GA
    One other thing you want to do is to make sure they have workmans comp too because this is a separate insurance from liability! And if you are paying someone, your homeowner's insurance covers nothing! Do not accept a copy from the contractor...have his
  • Sharon Bothwell
    Sharon Bothwell Ridgefield, CT
    Jeanette S, I agree. If look at the end of my 1st paragraph it states ... workers' compensation is required. And, yes, make sure the Certificate comes from the insurance company and you, the customer, are designated as the Certificate Holder.
  • Kim Merrett
    Kim Merrett Arlington, TX
    Texas is one of the few states that does not require a company to carry work/comp insurance. It is optional. if living in Texas and you want/expect your contractor to have work/comp, do not assume they are covered. As mentioned in other comments, have
  • Kelly S
    Kelly S Bremerton, WA
    Great info to start out the New Year. All I knew was to be sure they were licensed, bonded, and insured. I know that being licensed doesn't me they are competent because there is no specific test for general handyman license in our state. Be sure to ask
  • Southern Trillium LLC
    Southern Trillium LLC Stone Mountain, GA
    An issue that you typically hear on the news is when a homeowner gives a contractor a deposit and the contractor disappears. Or sometimes, the contractor requests additional money during the project, and at some point, the work ceases, and the homeowner
  • Sharon Bothwell
    Sharon Bothwell Ridgefield, CT
    Southern Trillium LLC, The contract should cover several points of interest for both the contractor and the client. Titus Built always "spells out" the following information in their contracts: Start / Completion Dates, Changes to the Scope of Work,
  • Leslie D
    Leslie D Las Vegas, NV
    Just being named as "additional insured" on the front of the certificate does not necessarily cover you. The main thing to ask for is to be named as "additional insured by endorsement to the policy". You will then get a certificate, with you named as
  • Sharon Bothwell
    Sharon Bothwell Ridgefield, CT
    Thanks for your great input, Leslie D!
  • Kevin M. Veler, Law Office of
    Great information Sharon. One more point. Be sure that the name of the insured contractor is also the contractor's entity name on your contract. If you contract with Joe X Construction LLC, that should be the name on the insurance certificate. Not Joe X
  • Sharon Bothwell
    Sharon Bothwell Ridgefield, CT
    We run into this problem quite often with the subs. The Certificate states one name and their invoice states another name. I always tell the subs to send me the Certificate in the name on the invoice or else I will have to cut the check under the name on
Sharon Bothwell