Contractors: Do They Need Insurance & A License?

If you are thinking about hiring a contractor for a project in your home there are so many things to consider. You can sometimes get caught up in a lot of the small details that are involved in a home remodel or basement finishing project but don’t forgot two important things: insurance and a license. Let’s go over these in more detail and why they are so important.

First, let’s discuss insurance. You need to make absolutely sure that your contractor has insurance. It is completely appropriate for you to ask for details about the contractor’s insurance – it is your right to know. Once you get the insurance company’s name it is not a bad idea to call the insurance company to verify the policy to make sure that it is current and doesn’t expire during your project timeline. For the policy itself, you want to make sure that it covers against any sort of liability, worker’s compensation or property damage. You don’t want to be the one financially responsible if someone is hurt while on your property. Also make sure that any sub-contractors that are brought in for your project are also covered.

Next, let’s talk about contractor licenses. This is something that homeowners will hear a lot about as they are evaluating different contractors. In the state of Colorado general contractors are not required to have a license. However, electricians and plumbers are required to have licenses to work in the state so if your project requires either of those specialties, makes sure they carry the right license to complete the work.

It’s also a great idea to check with the Better Business Bureau to make sure that no complaints have been filed against the contractor by a client or a sub-contractor.