How to check a contractor’s insurance

Three things people mean by “insured”

• General liability pays for damage to your home or belongings, and injuries to you or your guests, caused by the pro’s work. This is the one to ask for first.
• Workers’ compensation pays the pro’s own workers if they’re hurt on your property. Most states require it once a business has employees; a one-person business often doesn’t need it, and Texas lets private employers opt out entirely. If a crew comes to your home, ask for it.
• A bond isn’t insurance for you. A license bond is a guarantee to the state that the pro follows the rules; a janitorial or fidelity bond covers theft by an employee. Useful, but it doesn’t replace general liability.

Some trades need more: movers should carry cargo coverage for your things in transit, inspectors and designers professional liability (errors and omissions), and pest and mold work pollution liability. Each trade page lists what to ask for.

How much is enough?

Many contractors carry $1 million per occurrence and $2 million aggregate (the most it pays for one claim, and for all claims in a policy year). Smaller residential policies of $500,000 to $1 million are common, and bigger or riskier jobs often add an umbrella policy on top.

Where a state sets a minimum for a licensed trade it is usually lower, often $50,000 to $300,000, and a few states ask for more in specific trades. A minimum is a floor, not a recommendation: for a large or risky job it’s fair to ask for more.

How to read the certificate

Pros prove coverage with a certificate of insurance (COI), usually the one-page ACORD 25 form their insurance agent issues. Check, top to bottom:

1. Date: recently issued.
2. Producer: the agent or broker who issued it. This is who you call to confirm it.
3. Insured: the business name matches the pro you’re hiring, exactly.
4. Coverage types and policy numbers: general liability at least, and workers’ comp if a crew is coming.
5. Effective and expiration dates: in force now, and not ending before your job does.
6. Limits: per occurrence and aggregate (see above).
7. Description of operations: the work they do should match your job. It’s also where “additional insured” wording appears if you asked to be added.
8. Certificate holder: who it was issued to. For a big job you can ask for one issued to you.

A certificate is a summary, not the policy, and it doesn’t create or change coverage. For a large job, call the producer listed on it and ask them to confirm the policy is active.

What “Insured” means on ExpertMarketplace

• Insured, certificate checked: the pro uploaded a certificate and we looked at it: the business name, the coverage and the dates.
• Insured through [date], not checked yet: the pro told us they’re insured and gave the expiry date; we haven’t seen the certificate yet.
• No insurance on file: the pro hasn’t told us about any coverage.
• The Verified mark means we checked both the license (where the trade needs one) and the insurance certificate. It comes off on its own when either one lapses.

Checking a certificate isn’t a promise that the policy covers your exact job, or that it won’t be cancelled later. For a big job, confirm with the pro’s agent.

Six questions to ask before you hire

1. Can you send me your certificate of insurance?
2. Does your general liability cover this kind of work at my home?
3. Will anyone else work on the job, and are they on your workers’ comp or their own?
4. Do you use subcontractors, and do they carry their own insurance?
5. When does your policy renew?
6. For a big job: can you add me as an additional insured, or issue the certificate to me?