Protecting Your Roofing Investment

In the construction/contracting business, and particularly in the roofing industry, it is not uncommon for new or financially insolvent contractors to give you bids without having the necessary insurance to protect you, the client. California law requires contractors to hold Workers Compensation Insurance if anyone but the owner of the contractor’s license is on the job for any reason. Don’t be fooled and put your financial wellbeing at risk.

Before hiring any contractor, get a copy of his state contractor’s license and a copy of his Workers Compensation Insurance carrier. Then verify the validity of the insurance. Make sure the contractor’s license number matches the name under which he is doing business (DBA). If it doesn’t match he is working without a license, which means working without insurance. THE NAME ON YOUR CONTRACT MUST BE THE SAME AS THE NAME GIVEN TO YOU, OR YOU DON’T HAVE A CONTRACT!!!!!!!!!!!!

On large re-roofing agreements, it is crucial that the contractor carry General Liability Insurance in an amount of at least $1,000,000.

You, the owner, should be sent a certificate stating that you are “Also Insured” from the contractor’s general liability carrier to help indemnify you against potential losses of hundreds of thousands of dollars in court expenses for problems occurring in the future. Or, if your building insurance carrier has to handle a problem that the contractor’s insurance should have covered, you may find that you are unable to buy insurance in the future.

Life is too short! Be smart. Before hiring a contractor:

  • Get a copy of their contractor’s license that states how many years they’ve had in the business
  • Get a verification that they carry Workers Compensation Insurance.
  • Get an “Also Insured” from their General Liability Carrier.
  • Check the contractor out on “Google” Contractor State License Board.
  • Find out if they have a rating with the Better Business Bureau.