In beautiful Lake Geneva, it seems like homeowners are always working to improve their homes. You want to add more space, add a few new features, or update your home to be more energy efficient. It’s a wonderful benefit, but who you hire really matters.
At Glass Insurance Center, we have seen many of our clients suffer financial loss due to the mistakes contractors make. And, if this contractor does not have the right type and amount of insurance coverage in place before you hire them, you could be held responsible for the losses. Here’s an example.
A homeowner wants to add an extra bedroom onto their home. This is a larger scale project because it extends the home’s footprint. They get plans drawn up, get approval, and then hire a contractor. But, the contractor fails to perform the job properly. And, in one instance, an employee falls off a ladder and suffers significant medical injury.
You do not want to have to pay for these losses. But, could you be responsible?
First, Choose the Right Contractor
Before going any further in your plans to update your home, find a contractor with a proven track record you can depend on. This is critically valuable to you. This means learning about the contractor’s reputation in the community. It also means ensuring the contractor has the proper license in place to operate in Lake Geneva. You also want to learn about any claims made against the contractor.
Next, Verify Insurance
Contractors always need to invest in commercial insurance to have some level of financial help when a mistake happens, but not all will have the right coverage or enough of it. Here is what you need to ask about before hiring the contractor, then.
#1: Workers’ Compensation
In the state of Wisconsin, most businesses are required by law to have a workers’ compensation policy in place. This type of policy may help to pay for employee injuries on the job. For example, an employee falling off a ladder may have his or her medical bills paid for through this policy if it qualifies.
#2: Commercial General Liability
This type of insurance provides financial support to the company when someone sues them for negligence. For example, if the builder fails to follow the plans approved by the city, you do not want to have to foot the bill for the remodels and changes. In this case, it may be beneficial to file a claim against the company’s commercial general liability insurance to pay for the losses.
#3: Builders Risk
Builders risk can protect the homeowner as well as the contractor. This coverage provides financial support to protect equipment and building materials on site.
What Else You Need to Do
We encourage you to call Glass Insurance Center and let our team go to work for you. We can help you verify the contractor’s insurance. And, we can also take a closer look at your own policy. Doing so will allow us to make sure you have ample liability insurance yourself to protect against any claims filed against you by the contractor or his or her employees.
Also, when making a significant change to the layout or structure of your home, especially one that changes the value of the home, you need to have your home insurance policy in Lake Geneva updated. This helps to make sure your property – at its current value – has coverage if a fire or other peril occurs.