Insurance for contractor

Contractors and Insurance: What You Need to Know

Are you thinking of doing some repairs to your home? Or, perhaps you are planning to remodel your kitchen and bathroom. Whatever work you need done in your home, you should turn to contractors. They can get the job right and there will be less chance of mistakes, which can be very costly.

Just remember that when you are hiring a general contractor in Salt Lake City, you need to choose one that carries the right insurance policies. Now, what are those policies and why are they so important?

Insurance Must-Haves for Contractors

It is possible for you to hire an uninsured contractor. In fact, hiring one may even be cheaper than going with an insured one. But, it is not a good idea to hire a contractor who does not carry the right policies. It can only cause more problems for you in the long run.

Any project for which you need to hire a contractor can be costly. It is a form of investment on your part. You do not want to take any unnecessary risks, and hiring an uninsured contractor is such a risk.

The two insurance policies that must be carried by contractors are:

  • Contractor’s liability insurance
  • Workers’ compensation insurance

What is covered by these two policies?

  • Contractor’s liability insurance – Contractors can be sued for damages and injuries that happen while they are working on a project. The contractor’s liability insurance can help them cover for the expenses in case there is a lawsuit and they have to pay for damages.
  • Workers’ compensation insurance – This is the kind of coverage that helps to pay for the costs in case a worker gets sick while on the job. It helps protect the workers of the contractor and ensure that they have proper coverage.


construction worker

Why Contractors Need Insurance

Here are some of the main reasons you need to hire a contractor with the right insurance policies:

  • Credibility – A contractor with all the needed insurance policies is more credible. It says that they can really be trusted to do things right and are less likely to cut corners when doing work in your home.
  • Liabilities – What happens when something goes wrong? When you are dealing with a contractor that is uninsured, you are going to end up shouldering all the costs.
  • Quality Work – To get a license, contractors have to get the required insurance. This assures you that the work you will be getting is of high quality.
  • Save Money – In the long run, you are going to save money when you hire a contractor that has all the needed insurance.  Their work will require less maintenance since the quality is higher.

It might be tempting to hire an uninsured contractor since their services are cheaper, but you should not look at the short-term costs. At the end of the day, the trouble that uninsured contractors might cause will cost you more in time and money. So, make sure that you do things right and only hire those with the right insurance.

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