Checking A Contractors Insurance

Home owners looking for a contractor make a major mistake when checking a contractor’s insurance.  I see between 400 to 500 projects per year and meet many potential clients and home owners.  And although most home owners understand the risk of allowing a contractor to perform work on your property without having insurance, many never ask.  Some do ask from time to time, but most will do that, just ask.  Very few homes owners ever ask to see proof of insurance and check if the insurance provided covers the type of work being preformed.  Focusing on mold removal as an example, this is one of the most difficult insurance policies to find because of the risk.  I have noticed that most of my competitors do not carry mold or pollution insurance because they may have had previous claims, or because of the main reason, the cost.  Mold/Pollution insurance is one of the highest types of construction policies to have, and many remediation companies will not carry this type of insurance.  Most will get just liability insurance, but if your home should be cross contaminated after project is completed, your home will not be covered for any losses.  Be sure to ask your contractor for a copy of his or her insurance and check with the insurance company to see if the policy is still active.  Remember, most policies can be written with one year terms but canceled on the first month for many reasons, and the contractor will still have a policy with a valid date.  So to insure your not a victim of this type of fraud, call the provider and check the accuracy of the policy, while also asking if the policy covers your home if there should be any damage.  You may also request that your home is listed on the insurance policy if you are doing a large job or if there are any machine rentals or the use of heavy equipment.  And if the company uses subcontractors, which is something we never do, be sure that that sub has the proper insurance as well.  These little details can and will save you thousands of dollars and possible litigation of there should be any problem on the job.  As for us, we carry 2 million dollars worth of Mold Removal, Pollution, and General Liability insurance and have a copy of our policy readily available to view at any time.

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