You might have read that home remodeling contractors should have what is called “contractor insurance” and that you need to make sure they can offer proof of that before you hire them. However, this is not accurate, as experts can tell you that contractor insurance doesn’t even exist, and the misnomer has been responsible for quite a bit of confusion among homeowners trying to sort out which contractors they should hire.
The whole issue regarding contractor insurance started when some insurance salespeople and inexperienced contractors used the term when referring to the bundle of insurance policies and bonds that they used. In all actuality, what people call contractor insurance is a mix of necessary insurance policies that responsible remodeling contractors Fort Collins businesses should have.
These policies include, but are not limited to:
- Workman’s compensation, which caters to the insurance needs of the workers and technicians that the contractor hires;
- Liability insurance, which deals with keeping the contractor safe from a legal perspective, in case they are sued by their clients who have made claims against them regarding injuries or property damage;
- Property damage coverage, which is typically used to cover the costs of any damage done to the property of the client during the work done on a home remodeling project.