The Importance of Working with a Fully Insured, WCB Certified Contractor
Hiring a contractor who is fully insured is important for a number of reasons. There are two types of insurance that should be met by your contractor: liability insurance and worker’s compensation insurance. Liability insurance covers situations in which a contractor causes accidental damage to your property, whereas workers’ compensation insurance provides payment to injured workers for lost wages and medical services if they are to be hurt while on the job.
Contractor’s insurance will ensure that a contractor can pay for lawyer fees and damages if they are sued over their work. Additionally, it means that someone who hires a contractor does not end up paying if the contractor is sued ‐ in an event where a contractor who does not have insurance is sued, the person who hired them and is considered their employer can be held responsible for any wrongdoings or accidents they cause.
Contracting work is inherently dangerous. In the event that someone is injured on the job site, contractor’s insurance will cover the medical and work-loss costs that may be involved. If there is no insurance in place, the employer of the contractor may be sued for these losses.
Workers Compensation highly encourages anyone hiring a contractor to request clearance letters from any company that they hire. This gives proved documentation that the contractor has their own coverage, and will help to clear you from any responsibility if an issue does occur. If you do not receive a clearance letter from a contractor, and it turns out that the contractor has not paid their workers’ compensation premiums, you may become liable for paying those premiums.
For a number of reasons, it is important to ensure that any contractor you hire has their own contractors’ insurance and workers’ compensation insurance. This will keep you in the clear from any added and unexpected expenses in the event of a mishap with the project.