Eastern Madera County, Ca. area
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Why Hire a Contractor with Liability and Workman Comp Insurance
Important Information
You have probably read or seen a news story describing an unsuspecting property owner who inadvertently was ripped off by a contractor. This Contractor either took a deposit, did not do the work, never showed up, or only did part of the work. You as an homeowner can protect yourselves when you are selecting a contractor for a home improvement project. To see how, keep reading.
First there are two types of insurances a contractor should carry; Liability and Workers Compensation (Workman's comp) Liability is the most important of the two. Why?
A contractor or his worker, while working on your property can get hurt by accident without warning. If an injury occurs, then you as the property owner would be liable in the way of legal fees and a lawsuit.Don't be fooled by cheaper prices, there are risks involved. Hiring a good fully insured contractor will lessen the risks!
Keep in mind that. Lawyers are usually paid a minimum of $200 initial consultation fee. Go to court? Not a good idea, usually you will be judged responsible for damages and more lawyer fees. Here's where Contractor liability insurance becomes important, thereby paying for any medical expenses, lost wages due to the injury, and can cover the cost of purchasing new equipment.Many reputable contractors will tell you they have Workman's Compensation insurance and Liability. To truly protect yourself against any losses and lawsuits if an accident occurs on your property, be sure to ask if the contractor carries such insurance. Ask to see a Certificate of Insurance prior to signing an contract or agreement. Most Contractors will be most obliging to present you their insurance certification.
When viewing this insurance document, check for his name on the document. Then be sure to check the expiration dates to make sure the policy will not lapse in the middle of the job. Should the dates lapse before the work is completed you can add a in the contract for the work to stop until such policy is renewed. Also hold back any payments until the policy is back in force protecting you and your contractor.
Other Notable Facts: A supplier who sells materials on credit to an unlicensed contractor for your property can lien YOUR property and or sue you for the amount of the materials if those bills aren't paid? Also sub-contractors / workers who work on your property for an unlicensed contractor have the option of suing the property woner (you) for wages due them but never paid out by the hired unlicensed contractor.
Well happy hunting. Keep in mind the contractors listed on this site are fully insured and licensed at the time of creation of this site. They are very reputable too.
However, the contractors on this site, you must check them out for yourself. I am not responsible for any misrepresentation or changes in their license, etc, of any contractor you may hire.
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