Ask a Professional - July 2007

Does it matter what kind of insurance my contractor has?

    California does require a contractor to carry workers compensation insurance if he/she has employees that work on the job. A contractor can also claim exemption on file if they themselves are the employees working on the jobsite. Liability insurance although not required is advisable in that if something goes wrong during or even after the job is completed the insurance carrier can take care of it. New laws require all contractors to disclose this insurance information on a separate form at the same time he/she presents the contract. You as the home owner will sign this form acknowledging that you are aware of what the contractor carries and does not carry. Also, all contractors are required to carry a “Surety Bond” which helps to cover possible miss-dealings usually with other contractors. There are other Bonds and Insurance issues at which we’ll discuss next time.