Contracts and Insurance

[scottbell]

What is the name of your state? MA

Hi,

I'm in the process of hiring a contractor to demo a garage. I have very little experience with this. I recieved an estimate that was affordable and told him I would like to hire him for the job. At that time I asked for proof of insurance. He told me that he would need to get a letter from his insurance company, but they would only do that if the contractor had a signed contract from me stating I was going to hire hime for the job. I questioned him about this and he stated that it was common practice because his insurance company would have to write out hundreds of letters a year. Which had me wondering why he just didn't have some sort of generic proof of insurance. So, after a few more questions from me he calls back and says that he talked to his insurance company and that they would send me something by e-mail and by mail along with the contract.

I guess what I need to know is...what am I looking for and what should I look out for? I know it's a very general question, but any information will be appreciated.

Thanks,
Scott

 

[bdancer]

Insurance companies provide certificates of insurance every day. There is not requirement for a signed contract. Sounds like your contractor is trying to seal the deal.

And the contractor could very easily have a generic certificate of insurance to show his coverage. It pretty normal for them to have such a document.

 

[moburkes]

He DOES have a certificate of insurance. You should also make sure that he is licensed and bonded, and that he gets a permit for the demo.

 

[scottbell]

Well the garage came down with no problem.

Thanks for your advice and thanks to you Moburkes for helping me out in the insurance department.

 

[moburkes]

You're welcome. We like happy endings, and good results. Thanks for the update!