Is Your Hired Contractor Properly Insured?

It is important that the next contractor you hire is properly insured. We recommend this to our clients all the time. Proper insurance includes both general liability, completed operations liability and workers compensation insurance. If a project fails or any damage is done to your property, the insured contractor is the only one who will potentially provide financial coverage. If a contractor is injured on your property, a workers compensation insurance policy will provide coverage for the medical claims and possible lost wages. 

At times, asking the question creates a difficult or uncomfortable situation. The hired contractor could be a friend, family member or someone you used multiple times in the past.

The Massachusetts Department of Industrial Accidents provides a search engine to allow individuals to verify workers compensation coverage for businesses operating within the State of Massachusetts.  This link can be found on our website at http://www.insuranceinmass.com/Resources.html by clicking on the Proof of Coverage by Employer link.

Please remember that the search engine only provides a history of workers compensation coverage shown by policy renewal dates. The search engine is not going to indicate if a contractor has coverage the day they start on your project. For example: if a contractors workers compensation insurance is cancelled for non-payment of premium, the search engine is not going to be updated with the latest information.

It is always best to ask for a Certificate of Insurance. A certificate of insurance is a document issued by an insurance company or agency that is used to verify the existence of insurance coverage issued to an individual or company. More specifically, the certificate of insurance lists the date the certificate was created, the effective date of the policy, the type of insurance coverage purchased, and the limits of liability applicable to each policy.

You should ensure the validity of a contractor's insurance by having the certificate sent to you directly from the insurance office. If you have any questions, please do not hesitate to call or email our office.