Successful contractors are aware of the potential risks on the job. As a contractor, you work with many tools that could potentially cause damage if they aren’t used properly. Contractors general liability insurance gives you a layer of protection if something goes wrong. Sometimes mistakes happen.
If you’re a homeowner assessing options for your next renovation project, you may be surprised to learn that liability insurance does not cover any substandard work that a contractor performed on your home.
How Does Contractors General Liability Insurance Work?
Contractors are legally required in most states to obtain general liability insurance before they are allowed to work on a project. As previously noted, general liability insurance does not cover average work. It’s recommended that you look over your home insurance policy before hiring a contractor. Many home insurance policies do not cover poor work performed by contractors as well. If you are not satisfied with the results of the project, you can ask the contractor to make repairs or consider hiring someone else. You may also opt to sue the contractor in an effort to recoup the repair costs. If the contractor is bonded, you can attempt to recover the funds. However, bond premiums are generally low.
Long Term Damage
Contractors general liability insurance policies could have other potential exemptions as well. Perhaps your contractor’s poor work causes a wall or your roof to cave in. The insurance may not cover those damages. If you hired the same contractor to build the wall, the damage that caused the wall to potentially cave in may be excluded due to the average work performed when the wall was originally constructed. It’s recommended that you avoid working with a contractor who has performed poor work for you in the past.
One of the most alarming potential consequences of a contractor performing poor work is if you or one of your loved ones suffers a serious injury. If you suffer an injury, general liability insurance should cover your medical treatment and rehab. Some policies also allow you to recoup lost wages while you’re unable to work. The contractor’s liability insurance may not cover the poor work that eventually caused your injuries. If one of the contractors sustains an injury while working on your home, their liability insurance will not cover it. Contractors are obligated to purchase workers compensation insurance in the event that they suffer an injury on the job that requires urgent medical attention.
Extra Coverage Options
If you are currently searching for a contractor to complete your project, ask them if they have purchased extra coverage. Contractors can purchase extra coverage that provides a layer of protection if they perform average work. Product and completed operations coverage is considered a rare form of coverage. It’s recommended that you hire a contractor who has obtained product and completed operations coverage. You want to avoid a situation where you could be left vulnerable because the contractor performed mediocre work.
Consult with Artisan Insurance Solutions
Contractors work on high-level home renovation projects on a regular basis. However, mistakes do occur, and sometimes contractors do not perform work at optimal standards. If you’re preparing to work on your next big project, you’re advised that you add extra coverage besides your basic liability insurance. The agents here at Artisan Insurance Solutions will assist you. Contact us today and get the best coverage!