Contractor Liability: What You Need to Know

Spring is in the air, and with that, it becomes a seemingly perfect time to give your workplace a boost of fresh energy. Maybe you want to throw on a fresh coat of paint, some new windows, or that remodel you have been talking about for years.

However, before you make calls to your local small business owners for estimates, here are some things you should consider:

Does your contractor have insurance?

You should always request evidence of the General Liability coverage to ensure that if bodily injury or property damage is done during the course of the project, your contractor will have you covered. Having the contractor add your business as an additional insured for ongoing and completed operations is a must. Don’t forget, state law requires Workers Compensation coverage for any business with employees. Sole proprietors that do not have employees are not required to carry Workers’ Compensation coverage in the state of PA.

What is the cost of doing business with a sole proprietor that does not have Workers’ Compensation coverage?

If a contractor is injured at your job site and does not carry their own insurance, they may sue your organization. This is not just a concern for your business, but also your home renovations. If a contractor is hired that does not have Workers Compensation coverage and is injured at your property, they may be able to file a claim under your homeowners policy. If it’s a serious injury, your homeowners liability coverage is not likely to provide total relief.

Know the risks before you renovate. Ask for insurance and protect yourself. You are making an investment in your business: don’t let it become a liability.

Ask your Exude insurance representative for more information on how to protect your business.