What does it mean to
be licensed and insured? Any contractor
you hire to work in your home should have a contractor’s license and carry
insurance – both general liability and worker’s compensation. This is intended to protect the homeowner,
but most homeowners don’t recognize the true meaning and importance of being
licensed and insured so we are going to explain it.
In Illinois, only
roofing contractors, electricians and plumbers are required to have a license. A general contractor does not need to obtain a
license or pass any exam. However,
having a license sets a contractor apart from those that don’t. Generally if a contractor doesn’t make the
effort to get a license there is a good chance that they won’t take the time to
get insurance. Possessing the correct
licensing tells the homeowner that the contractor takes his work seriously and
that he has the ability and knowledge to perform a quality job.
Another essential aspect
to think about when hiring a contractor is not only that they are insured, but
the type of insurance that they carry. Did
you now that sometimes contractor’s advertise that they have insurance when in
fact their work truck is all that is insured?
Having the proper insurance is a large expense, but a quality contractor
will spend the money – it protects the homeowner. The minimum amount of insurance a contractor
should have is general liability.
Liability insurance protects the homeowner from property damage. If there is damage done to the home due to
the contractor’s negligence it will not be covered by homeowner’s insurance. If you hire an electrician without liability
insurance and a bad wiring job causes a house fire your homeowner’s insurance
WILL NOT cover the damage, it is the contractor’s general liability insurance that
would cover any damage to the home.
There is also worker’s
compensation insurance which is so important and many contractors don’t have
this type of insurance because it is expensive and not required. Workers compensation protects the homeowners
from liability if a worker is injured in their home. Did you know that if a worker is injured in
your home and the contractor doesn’t have workers comp the homeowner could be
held responsible for medical costs and lost wages? If that happens, you better hope it is
covered by your homeowner’s insurance or the out of pocket cost could be astronomical.
Whenever you hire a
contractor you should ask to see a copy of a current license and certificates
of insurance. A good contractor will be
happy to provide this information. They
have gone out of their way to insure your safety and as a professional they
want to show their client’s that they have the skills and knowledge to perform
high quality work.
Cyndi - www.redcarpetconstruction.com
