Liability insurance and Better Business reports are the Key!
We have all read articles and seen the reports telling us that a contractor should be
licensed and carry workers compensation. We have all seen that we should get three bids
and if we will be safe.
Let us say those statements are good to know but they are not the most important
items. Liability insurance is what will protect you from the most expensive losses
including damage to your home and personal injury. Contractors are not required to carry
liability insurance, yet it gives you, the “Homeowner”, the greatest protection.
Let’s create a situation so you can see what happens. Say you did your homework,
got three bids, verified that they carried workers compensation insurance and hired a tree
trimmer to cut down several of your trees. He was the middle price, had his name on his
truck, had business cards and a contractor’s license. You signed his proposal and told him
to start. He arrives in the morning with his crew, sets up his boom truck to reach the high
spots and goes to work. During the process something goes wrong; the tree being cut
down falls and hits the boom truck causing the truck and boom to spill over into your
neighbors’ house, and crashing into the side of your house. The tree rolls to the side and
also crashes into your house, breaking the window and throwing shards of glass into the
bedroom where your husband is asleep. His injuries need immediate attention, an
ambulance is called and he is rushed to emergency; fortunately he will be okay. The
injuries only caused the need for 125 stitches. After getting over the shock you realize the
damages are extensive to your house and your neighbors’ house.
After the dust settles, the repairs, medical bills and attorney fees will be in the
hundreds of thousands and the tree trimmer doesn’t carry liability insurance, so all of the
expenses will be burdened by you and your insurance. Your insurance company will
probably sue the contractor but he has no assets to collect from. You’re glad you mailed
your insurance payment but you just remembered you raised your deductible to save on
costs. Your husband has lost 80% of the movement in his right arm and the contractor has
filed bankruptcy, walking away.
Your husband has lost his ability to perform his job as machinist and can no
longer provide for your family. Your medical insurance doesn’t provide for loss of
income and retraining. If the contractor would have had liability insurance you would
have been able to protect your family.
We recommend you ask not for “insurance” BUT LIABILITY INSURANCE
WITH NO LESS THAN ONE MILLION IN COVERAGE, ASK FOR PROOF, and
CALL AND VERIFY…YOU WILL NEVER BE SORRY YOU DID.