Why it is Important to Check if a Contractor has Liability Insurance

When it comes to hiring a contractor, most people have a basic check list that they go through in order to ensure that the individual they hire does not end up causing more work, hassle, and costs than the project should entail. Whether you are looking for someone to do your landscaping, build a house, put in a new deck, erect a fence, paint, or do some repairs, you probably have checked some reference and have an idea how their costs stack up.

One thing that many home owners forget to check when it comes to hiring a contractor for their work is whether or not the individual carries liability insurance. This can be a big mistake on the part of the homeowner, because failure to carry liability insurance on the part of the contractor can mean that the person who hired her or him is responsible for any financial court costs if injuries occur as a result of work on your property.

You might think that injuries are unlikely, but you just never know what might happen on a job site. Even something as harmless as weed eating can result in an eye injury to a passer by if the contractor is not careful, and without liability insurance carried by the contractor the home owner will be the one bearing any medical costs or court settlements. In fact, any injury that happens to someone on your property or in your home as a result of work being done will be considered your fault in the event of a court case, unless the contractor carries his or her own insurance.

It is not just guests or people passing by your home that you have to be concerned with, either. The contractor's own employees can hold you accountable for injuries they sustain while working on your property, and unless the contractor has liability insurance you will have to pay the costs. If the contractor does carry liability insurance, then the policy will pay for injuries to employees.

The one exception to the employee rule is if the contractor herself is injured on the job. In that case, the homeowner is not held responsible.

In every other case, though, it is important that you make sure that your contractor carries liability insurance. Failure to make sure they do could end up costing you a lot of money!