Homeowners in Wisconsin often need to update their home’s HVAC system. A new furnace or air conditioner can help you reduce your energy bills while also helping you to battle the extreme temperature changes in our area. But, if you do not do your homework first, the results can be damaging.
At Lillie-Couch Insurance, we’ve seen a variety of situations happen that end up costing the homeowner money. Here’s an example. A homeowner invests in a new heating and cooling system for a home. The project gets started, but as it begins to get underway, a technician stumbles and falls off a ladder, creating significant injuries. The contractor’s insurance should cover this, right? This may be the case, but in other situations, it is not what plays out.
The problem is specifically related to insurance coverage. If the contractor does not have adequate insurance, the worker’s injuries could become the responsibility of the homeowner. Let’s talk about how to avoid this.
Ensure the Contractor Has the Right Insurance
There are several steps to take to protect yourself when hiring contractors. The most important is to know who you are working with before you sign a contract. Take the time to determine what the company’s reputation is local to you. Did they obtain permits? Did they have complaints about workmanship from previous clients?
Next, consider their insurance. Here’s a look at the most important policies for contractors.
Workers’ Compensation
Workers’ compensation is necessary in Wisconsin if an employer has at least three employees. As a result of this, most companies you hire to do HVAC work will need to carry this insurance policy. It provides coverage for the employer for an employee’s injuries on the job. If the worker falls, for example, his or her losses impact just the employer.
Commercial Liability Insurance
Another key aspect is protecting from lawsuits and claims against them. What if the company’s installed HVAC did not work or caused damage to your home? You may wish to file a lawsuit to overcome your losses. A commercial general liability insurance plan is necessary to do this.
In addition to this, some companies will benefit from commercial auto insurance, builder’s risk coverage, and professional liability.
Verify Your Own Insurance
It is also wise to allow your Clear Lake area home insurance agents to help you with ensuring your insurance is up to date. If the worker’s injuries are not covered, your home’s liability insurance could help cover some of those losses. Our team is happy to help you verify you have enough coverage for your project. It takes just a moment to do this.
What Else to Do
There are a few other tasks to complete before you hire a contractor for HVAC services, plumbing, roofing, or other tasks. You will want to focus on these steps before you get the project underway.
- Verify the company’s Certificate of Insurance. This shows you they actually have coverage, who it is through, and the types of protections.
- Let our team know if you are creating value on your property. For example, if you are modifying your home, let us know so we can adjust your policy to match your new home’s layout and design.
- Verify the company’s business license and the right to work in your community. In Clear Lake, permits are required for most types of projects like this.
It only takes a few minutes to ensure you have property insurance coverage minimizing your financial risks. Let the team at Lillie-Couch help you verify your coverage and needs.
