Have a process in place to obtain and verify insurance certificates is the best defense against uninsured contractors; it’s a simple solution to guard against potential risks. If contractors are adequately insured, their insurance will cover claims and the contractor will be responsible for any deductibles. Get the contractor’s license number and make sure they are insured for:
- Injuries
- Fire damage
- Building damage
- Damage to tenant property
- Damage to adjacent buildings
- Costs of temporary relocation during repairs
Subcontractors
If you hire a contractor to renovate your building, the contractor may hire a subcontractor for the hot tar roofing portion of the contract. If the roofer starts a fire and isn’t insured, you’re responsible for any injury, property damage, or other losses that result.
- Only hire contractors that have commercial general liability insurance
- Obtain certificates of insurance to confirm coverage and limits
- Implement a system to track and verify certificates of insurance
- Set minimum standards of coverage and limits
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