Insured Roofing Contractor? Coverage is one area that needs to be closely looked into when looking for a roofing contractor. The availability of insurance means the security of the project, workers and client. When looking for a contractor, inquire the specific details of the insurance coverage. A contractor that willingly shows this is a good candidate for consideration.
The insurance information should include the following:
1) Name and contact details of the insurance company and agent
2) Certificate of Insurance for Comprehensive Liability
3) Worker’s Compensation
4) Completed Operations Insurance
5) Property Insurance
6) Health Insurance for Workers
7) Vehicle Insurance
As soon as the contractor shows the documents, you have to be able to also look into the term of expiry. Usually, policies are only good for one year. Other contractors may have the insurance but it may be tampered. To ensure the legitimacy of this insurance coverage, contact the insurance company and ask for confirmation of the coverage.
Reasons a contractor is not insured
There are Owners that were sued due to accident happening during work also known as Worker Accidents. Oftentimes Owners Insurance Policies doesn’t include the coverage for outside contractors. This makes it all the more important for contractors to have a comprehensive insurance coverage. Contractors that reason out there is no need for insurance should be immediately removed from the list for consideration.
There are several reasons why roofing contractors don’t have any insurance:
ü They are not a full-time contractor
ü They are a new roofing company
ü They are partnership or self-employed roofing contractor
ü They are saving on cost because insurance premium are expensive
One sign that a roofing contractor is uninsured or underinsured is a low-bid. Since they don’t pay insurance premiums, they can of course offer lower rates to clients. Multiple lower bids are even more questionable. The importance of insurance coverage for a contractor cannot be overestimated.
Contractors that invest on insurance understand that their workers and your property need to be protected. It then becomes a big chunk of the construction project. This of explains why legitimate and insured companies bid higher compared to the fly-by-night uninsured ones. Again, it should be a comprehensive insurance coverage.
For instance, a worker’s compensation premium is 20% on top of the worker’s wage. It can also reach 100 percent which is heavily dependent on the type of work. When a contractor doesn’t get this insurance, the savings is also between the same rate – 20 to 100 percent. This puts the worker in grave danger.
Consequences of hiring uninsured contractors
Many projects were stopped and penalized due to hazards during the construction that affected both the owner of the house and the workers. These cases were even filed in the courts and those involved have to shell out more resources. Usually, contractors are not able to pay the damages leaving owners at a loss of the next steps to take. Other owners were forced to pay the penalties.
With all this, a roofing contractor has to have insurance. The contractor should have a safety plan drawn up based on the standards of OSHA. Contractors who know what they are doing would immediately show to you the plan including other documentations that has to be shown to a prospective client.