What insurance should a contractor carry? - Ravinia Plumbing
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What insurance should a contractor carry?

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  • Date: August 5, 2016

Every contractor should have four different components of insurance to make sure you are covered should there be an accident caused by your contractor.

  1. Auto insurance of $1 million because they have to drive to your job.
  2. Workman’s Compensation insurance of 500,000.  This is very important because if the technician working in your home or business becomes injured and does not have workman’s compensation insurance, you will be responsible for paying his medical costs and lost wages.  Your homeowners insurance may not cover you because it is your job to make sure the person you have working in your home is properly insured.
  3. Liability insurance of $1 million to cover damage to your home or business and its contents.
  4. Umbrella insurance that adds to the above coverages.  Make sure the total coverage is more than the value of your home/business plus the contents that can be accidentally damaged.

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