What insurance should my roofing contractor have?

What kind of insurance should a roofing contractor have?

A roofing contractor should have valid, and verifiable workman’s compensation insurance as well as liability insurance that will protect you, the homeowner or business owner, if an accident happens at your home or business.

What insurance should I require from a contractor?

The most important insurance that a hired contractor should have is workers compensation insurance. Hiring a contractor without workers comp insurance could leave you paying an injured employee or subcontractor’s medical bills indefinitely, just for hiring someone to fix your property.

Should my roofer be bonded?

In a number of states, roofing contractors need to get licensed in order to perform roofing work. Obtaining a roofer license bond is a common licensing requirement. … Besides a legal requirement to fulfill, bonds are also a strong sign for your customers that you are safe to do business with.

What does general liability insurance cover for a contractor?

General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

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What if a roofer falls off my roof?

Legally, the responsibility varies from case to case. There are cases where the building owner may be legally liable for the incident. For example, if the incident has been proven to be caused by the building owner’s negligence, they are liable. … You should have a contract in place that releases you from any liability.

What is the difference between being insured and bonded?

Insurance protects you in the event of an accident and allows you to operate legally. Bonds help create trust that you’ll complete the required project and allow you to work on public jobs.

What type of insurance coverage is traditionally used by contractors?

General liability insurance, commonly referred to as commercial general liability (CGL) insurance, is usually the first choice and most common type of insurance coverage that a contractor will seek out.

What does it mean if a roofer is insured?

When a contractor is insured, it covers the workers. This ensures that they will be able to receive medical care if they get into an accident on the job. Not only does this cover the contractor under worker’s compensation laws, but it also covers you.

What does bonded mean for a roofer?

When selecting a professional roofer, you always want to see that the roofing contractor is bonded for your protection. A bond, also known as a surety bond, is a legal contract that protects one party against monetary loss if the second party fails to perform the agreed task.

What is a surety bond?

A surety bond is a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).

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How much insurance should my contractor have?

Typically the variance in price is only around $15.00. Most third parties that require a contractor to have a general liability policy are looking for a $2 million aggregate coverage limit to get on the job. For this reason, we advise all contractors to carry $2 million in aggregate coverage.