๐๐๐ซ๐๐๐๐ฉ๐๐ฃ๐ ๐ฉ๐๐ ๐๐๐๐๐ฎ ๐๐๐๐ ๐ค๐ ๐พ๐ค๐ฃ๐ฉ๐ง๐๐๐ฉ๐ค๐ง ๐๐ฃ๐จ๐ช๐ง๐๐ฃ๐๐: ๐๐๐จ๐จ๐ค๐ฃ๐จ ๐๐ง๐ค๐ข ๐ฉ๐๐ ๐๐๐๐ก๐
Have you ever encountered a contractor with shady insurance documents? Do you know what to look for? As someone with years of experience in both contracting and selling construction insurance, I've seen some shady practices. This week, I received some questionable insurance certificates from a roofing contractor, and I want to share my insights to help you avoid falling into similar traps.
The Situation:
I asked a roofing contractor for his insurance certificates before he started the project (and before he received any money). He gave me an excuse that he was waiting for updated certs from his insurance broker. Knowing that broker personally, I was already suspicious, as they are typically very quick with certificates. After a four-hour wait, the contractor sent over a liability certificate, but no workerโs compโan expensive requirement for roofing work.
What really stood out, though, was the named insured on the cert. The first name matched, but the last name was different. When I inquired, the contractor claimed it was his dadโs name, followed by a convoluted explanation involving his brother's last name. He tried to assure me they worked together, but the deceit was clear. Needless to say, he didn't get the job.
Lessons Learned:
Always ask for insurance certificates. Liability and workerโs comp are standard requirements, but depending on the project, other coverages may be necessary.
For some projects and states, bonds are required. The following steps apply to bonds as well.
Always call the agent listed on the certificate.
When you call the agent, verify the policy is in force, check the policyholder's name, and confirm the coverage limits (e.g., $1 million liability, workerโs comp without limits).
Make sure the policy covers the specific trade you're hiring for. Some contractors may get a cheaper policy for general handyman work but attempt high-risk activities like roofing. In such cases, a claim could be denied.
Why This Matters:
Skipping these steps might seem tedious, but if a contractor causes personal harm or property damage without proper insurance, you might be left without coverage. Protect yourself and your investmentโit's worth the extra effort.
Contractors cutting corners on insurance is more common than you might think. By following these insider tips, you can safeguard your projects and investments from costly mistakes. Stay vigilant, and happy investing!
Source (Click Here)