Hiring a Contractor? Make Sure They’re Insured.

Hiring a Contractor? Make Sure They’re Properly Insured

When it’s time to hire a contractor, electrician, or home repair specialist, it’s tempting to shop around for the best deal. But if one bid comes in much lower than the rest, be careful that lower price could mean they’re cutting corners. And one of the easiest corners to cut? Insurance coverage.

At Villa Insurance Group, we see this more often than most homeowners realize. A contractor without proper insurance can leave you financially exposed if something goes wrong.

Real-Life Scenarios to Think About

• An electrician’s faulty wiring starts a fire that damages your kitchen and dining room.

• A contractor’s employee slips off your roof and breaks a leg.

If the contractor doesn’t carry general liability or workers’ compensation insurance, you could be responsible for the damage or injuriesno t them.

Even if they say they’re “insured and bonded,” don’t take their word for it. Some contractors may only have insurance for their vehicle, or a bond from a past project. Always verify before the work begins.

Step 1: Ask for a Certificate of Insurance

This is the first and most important step. A certificate of insurance shows proof of coverage and the active policy dates. If the contractor doesn’t have it on hand, they can ask their insurance agent to send it directly to you.

Check for:
Current coverage dates – Make sure the policy hasn’t expired.
General liability insurance – Protects you if the contractor damages property or someone gets hurt during the job.
Products and completed operations – Covers damage caused after the project is finished.
Workers’ compensation – Required for contractors with employees; it covers medical costs and lost wages if someone is injured on the job.

If a contractor says they don’t need workers’ comp, that’s only true if they’re a sole proprietor with no employees.

Step 2: Look for Additional Coverage

Depending on your project, these may also apply:

Builder’s Risk Insurance – Covers new construction or major remodels during the building process. Clarify whether your contractor provides it or if you should.

Fidelity Bonds – Protects you if a contractor’s employee steals from your property. While payouts can be tricky, it adds an extra layer of protection. (Still, it’s smart to lock up or remove valuables during a project.)

Protect Your Home and Your Wallet

Before you sign a contract or hand over a deposit, take five minutes to verify that your contractor’s insurance is real and active. It’s one of the best ways to protect your home, your family, and your finances.

If you’re planning a remodel, addition, or new construction project in Lynnwood, Bothell, Kirkland, or anywhere in the Pacific Northwest, we can help you make sure you’re properly covered too.

Call Villa Insurance Group at (425) 771-9000 or visit us at 20006 Cedar Valley Rd Ste. 202, Lynnwood, WA 98036 to review your home insurance and make sure you’re protected before the first nail is hammered.