Luckily, there’s a simple way to reduce the likelihood that a mistake or oversight on the part of your contractor will lead to serious financial loss for you:
"Verify insurance coverage"
This insurance will cover the contractor from legal expenses if you have to sue.
Each individual policy can differ significantly.
Most policies will provide the contractor with protection from property damage, slander, libel, product liability, slips and falls, and body injury to someone who is not your employee.
Never assume that a contractor has business insurance. As you shop around, ask about each prospect's insurance coverage.
Contractors can prove that they're covered by showing you a Certificate of Liability Insurance.
But be forewarned: A certificate does not equal coverage.
Once you've seen the certificate, it's up to you to verify that the contractor's policy has not expired. You can do this by calling the agent listed on the certificate.
An expired insurance policy is the same thing as no coverage at all.
If your contractor has insurance and makes a mistakes that causes damage to your home its a headache.
If your contractor is without insurance, those mistakes become a nightmare of repair costs, property damage and more.
Always verify insurance before signing a contract.