Is everyone under your roof insured? We’re not just talking about your family and your four-legged friends; did you know that anyone in your house performing general contractor work could be subject to liabilities under your insurance policy? Anyone who could potentially cause damage to your home—your plumber, roofer, painter, etc—or vice versa, needs to be licensed, bonded and insured.
To make sure that your general contractor fits all of the criteria, obtain a proof of insurance from the general contractor’s insurance company, which should list you as an additional insurer. A proof of insurance will state what kinds of liabilities the general contractor’s insurance covers, whether it be general liability, workers’ compensation, or any other kinds of accountability issues. Having you as an additional insurer on the general contractor’s insurance makes sure that their insurance company is the primary payout to you in the event of an accident, rather than having to have both parties file a claim on their own policies and subrogating them. This will save everyone a lot of time and money.
As a cautionary tale, we always warn people with the story of an unlucky homeowner who had enlisted the help of a local painter, who, unbeknownst to the homeowner, had no workers’ compensation or insurance. The homeowner went ahead with his house renovations without taking any precautionary measures or obtaining a proof of insurance. In a very unfortunate accident, the painter fell from the three-story house, and now the homeowner is under fire for all of the liability charges and damages. Had the homeowner checked for proof of insurance in the beginning, he would not be going through this hassle. Don’t let this happen to you!
If you’re not sure whether or not your general contractor’s proof of insurance is valid, check with your agent or send it over to BMR Insurance and we will evaluate it for you. At BMR Insurance we always advocate proper insurance for everyone, even in the most unlikely events.