There are many factors that must be examined when selecting a contractor for work performed at your home or on your property. One critical component is to request that the contractor provide a valid and current Certificate of Insurance (COI) before work is started. Contracting work with an uninsured or underinsured company or individual can be a very costly error. COI-Liability proves insurance coverage in case of property damage and Workers Compensation coverage protects the homeowner from financial responsibility in the case of an injury or a fatal accident while the company is on the property.
Follow these key points to check the validity of a Certificate of Insurance after receiving it from the contractor:
- Certificates must list insurance agent, known as “Producer”.
- Name of company or individual you hire will be listed as “Insured”.
- The COI must show the name of the insurance company who is providing the coverage. Note: There may be more than one company providing insurance, one for Liability and the other for Workers’ Compensation.
- The homeowners name and address should be listed as “Certificate Holder”.
- “Policy effective date” and “Policy expiration date” must appear on the form. Duration is typically one year.
- The “Issuance date”, located on the top right corner, is the best indicator of validity. Certificates should be less than 30 days old. If the contractor has not made their monthly insurance payment, the certificate may not be valid.
- COIs must show “Insurance coverage amounts/limits”.
Protect yourself and your home from lawsuits by uninsured contractors on your property. The general guidelines listed above provide you with the criteria needed to properly evaluate potential contractors.
As always, Kramer Tree Specialists, Inc. is properly insured and will provide a current COI upon your request.