We mostly insure our homes for residential purposes, and so our cover does not extend to business risks. That’s how we enter a grey area when we hire a contractor to work on our home. Insurance is a priority when hiring contractors. Because if they do not have it we could end up with expensive lawsuits, and judgements that we can ill afford.

Insurance is a Priority When Hiring Contractors

From time to time a customer tells us, “Siding is siding, why should I pay more than the company down the road”. Our prices are keen. If someone undercuts us, we know they must be sacrificing quality somewhere. Sometimes they do so by having inadequate insurance cover, or none at all.

We heard of a case where strong wind tore poorly fixed siding off a weather wall, and injured a child walking in the street. The owner ended up paying compensation after the contractor walked away because their cover was inadequate. Managing costs down matters, but not at the cost of quality when it comes to your home.

Questions to Ask Before Accepting a Quote

# Ask to see their City of Calgary business licence – you’ll find ours here

# Request a certificate of insurance against property damage and injury

# Ask for references from their three most recent jobs and call them

# Agree a schedule of payments against defined milestones of the job

# Know who is responsible for renovation plans, permits and inspections

# Ask a knowledgeable person to check the work description for completeness

What To Look For in a Certificate of Insurance

If a third party sues you for injury or death the contractor caused, will their cover indemnify you as owner of the home? If they damage your home or contents instead, whose insurance company pays for this? Who pays the first deductible amount if a ladder falls on your car?

A Calgary building contractor left their vehicle dangerously parked while offloading in the street. A car sideswiped it in heavy traffic. The contractor’s insurance had expired.  The homeowner needed a lawyer to avoid an expensive claim. That’s why insurance is a priority when hiring contractors.

Always verify a contractor has adequate insurance by asking to see original documents. If you knowingly hire an uninsured contractor, your insurance company may have the right not to cover you in a claim. Please ask to see evidence of ours, before accepting our quote.