Why Insurance Matters to You
When you hire a professional, their insurance protects you as much as it protects them. If a plumber floods your kitchen, an electrician starts a fire, or a roofer falls off your house, insurance determines who pays. Without proper coverage, you could be held financially responsible.
General Liability Insurance
This is the baseline coverage every professional should carry. It covers property damage and bodily injury caused by the professional's work. If a contractor drops a tool through your window, general liability pays for the repair. Ask for a certificate of insurance and verify it's current.
Workers' Compensation Insurance
If a professional's employee is injured on your property without workers' comp, you could be sued for medical expenses and lost wages. In most states, any business with employees is required to carry workers' compensation. Verify this before any work begins.
Professional Liability / Errors & Omissions
Professionals who provide advice or design services — architects, engineers, attorneys, accountants — should carry professional liability insurance. This covers losses caused by mistakes in their professional work. An architect's structural miscalculation or a lawyer's missed filing deadline falls under this coverage.
Bonding
A surety bond is not insurance, but it provides a layer of protection. If a bonded professional fails to complete a project or violates licensing requirements, you can file a claim against the bond. Many states require contractors to be bonded.
How to Verify
Ask for a certificate of insurance directly from the professional's insurance agent, not just the professional. The certificate should name your project address and show policy limits. Call the insurance company to verify the policy is active. This takes ten minutes and can save you thousands.
What Adequate Coverage Looks Like
For most residential work, look for at least $1 million in general liability coverage. For commercial projects, higher limits may be appropriate. Workers' compensation limits vary by state. If a professional hesitates or makes excuses when asked about insurance, consider it a significant red flag.
Insurance verification isn't optional — it's due diligence that protects your home, your finances, and your peace of mind.