posted by Custom Coatings, Inc. on August 19th, 2011
should the contractors you use carry insurance? “Absolutely!”
Our answer to that question is “absolutely!” This issue is what separates the real companies from the “fly by night” outfits that many people are scared of.
The fact is, many companies either do not carry insurance, or they don’t carry the right amount of coverage limits.
You don’t want to be liable for any injuries or damages to any property that happens during your project. That is why working with a fully insured contractor is so important. It protects both you and the contractor to ensure that if something does go wrong, you are both covered.
There are varying levels of coverage, but two of the important types of insurance that your contractor should have are Comprehensive Liability and Worker’s Compensation. If your contractor is properly insured it let you know that they are legitimate and are invested in getting the job done correctly and safely.
Comprehensive Liability Insurance
Comprehensive Liability insurance protects you and your contractor against claims of bodily injury, physical injury, or damage to the property. You don’t want to be held responsible for paying all the damages that can occur in an accident, no matters whose fault it is.
Worker’s Compensation Insurance
Worker’s Compensation insurance gives medical care for employees who are injured in the course of employment, in exchange for relinquishing the right to sue his or her employer for negligence. This offers not only another layer of protection for you to avoid legislation, but also makes sure there is money available for any medical or rehabilitative services needed for anyone injured on your project. Again, though no one thinks these accidents will happen, it is best to be prepared when working in the construction field.
Completed Operations Insurance
Completed Operations insurance protects the contractor from liability from any injuries or damages that might happen after the project is completed. The contractor will take care to complete the project safely and free from all reasonable hazards, but it again protects you against a worst-case scenario.