With the economy improving, we are sure that many of you are considering doing some improvements and/or upgrades to your home. As you begin your search and try to find the right contractor for the job, we recommend that you consider asking these contractors for the following:
– Get a signed Contract (even it its hand-written)
– Request a Certificate Of Insurance
– Ask to be named as “additional insured” on the painter’s comprehensive general liability policy
Not asking for these items can lead to significant risks for both individuals and businesses. Here’s an example of a recent case:
A retailer hired a painting contractor. He accepted the painter’s proposal over the phone but didn’t get a written contract defining the responsibilities of both parties. He didn’t obtain a Certificate of Insurance or a “hold harmless” agreement, and he did not arrange to be named as an Additional Insured on the painter’s comprehensive general liability insurance policy.
In doing the work, the painter was badly injured. Although the retailer did nothing to directly cause the accident, a jury awarded the painter $830,000. With no agreement other than the original bid, no 3rd-party claim could be filed against the painter’s insurance policy. The retailer was responsible for paying the entire $830,000.
Unfortunately, cases like this are far too common but can easily be avoided. If you have any questions, call your insurance advisor or give the McLean Insurance team a call at 703-637-4331. Also, you can always request more information by filling the form below.
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