Subscribe or Renew Membership Subscribe Renew

How much Liability and Workers Comp insurance should our contractor carry?

BradEcho's picture

My wife and I are trying to line up a contractor to do some work on a 1907 four-square. In a nut, the job involves rebuilding two rear porches, installing 27 windows, 1 door, re-roofing a front porch, wrapping a lot of trim in aluminum, installing new gutters, tear off a decorative chimney in sad shape, and siding the house and a detached two car garage.

It's been almost 20 years since I used a GC, but I still had the certificate of liability and workers comp certificate.  In 1998 my contractor had limits of one million for everything except medical expense ($5k).


The contractor we are considering TODAY has workers comp of $100k for each accident, $100 k fo disease, $500k for policy limit. For General liabiility they have $1mil for each occurrence, $100k for damage to rented premises, $5k medical experience, $1mil for personal injury, $2mil for general aggregate and $2mil for comp/op aggregate.

Does this sound right? It looks like the bare minimum, but I don't know.

Thanks for any advice.

Brad

It probably is bare minimum (post #213929, reply #1 of 5)

It probably is bare minimum and its probably what most contractors will have. We're all optomist!

 

Your insurance agent would have the best answer to your question though.

Florida Licensed Building Contractor, 45 years experience in commercial remodeling, new homes, home remodeling and repairs and all types building maintenance.

Yeah, you probably want to (post #213929, reply #2 of 5)

Yeah, you probably want to check what your homeowner's policy covers.  And probably best to actually talk to your agent, vs just trying to decipher the hieroglyphics.

Of course, one of the more common losses on a deal like this is to have the guy get started, tear off half the roof, take your money, and run. 


Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.  --Herman Melville

Homeowners has nothing to do (post #213929, reply #3 of 5)

Homeowners has nothing to do with construction.

Florida Licensed Building Contractor, 45 years experience in commercial remodeling, new homes, home remodeling and repairs and all types building maintenance.

I'm concerned about (post #213929, reply #4 of 5)

I'm concerned about liability.  If the guy's employee falls off the roof and breaks his back he might come after you.


Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.  --Herman Melville

"Of course, one of the more (post #213929, reply #5 of 5)

"Of course, one of the more common losses on a deal like this is to have the guy get started, tear off half the roof, take your money, and run.'

What would that very uncommon situation have to do with the Contractors liability and comp policies? Neither would provide any protection to the homeowner.

 

Florida Licensed Building Contractor, 45 years experience in commercial remodeling, new homes, home remodeling and repairs and all types building maintenance.