When it comes to hiring someone to perform a service in your home or on your property, whether it's lawn care, home repairs, or any other service, one of the most critical steps you can take is ensuring the partner you choose is fully licensed and insured. Licensing means the service provider has gained the knowledge and experience in their field to be certified in their trade and/or the state and can safely and expertly perform the service they say they can. A reputable service provider will protect themselves and the people they serve by securing the proper liability insurance and freely offer to show it or provide a certificate when asked.
Let's explore why asking for proof of insurance can build trusted partnerships, protect your assets, and save you money.
Understanding the Risk
When you are considering hiring a licensed or unlicensed contractor, you have the right and the choice to request proof of insurance. Providing proof of insurance is a no-charge service from the insurance carrier to the contractor or vendor. It's simply evidence that their insurance exists and what it will cover if needed. Providing proof does not increase costs for you or your contractor. However, hiring an insured professional may come at a slightly higher cost because it helps cover the expense of maintaining comprehensive insurance policies.
Is asking about insurance and paying more for high-quality, responsible service worth the time and effort? Absolutely since choosing not to ask opens the possibility of working with someone uninsured. If they are not insured, you are assuming all the liability for any property damage or injury that might occur during the project. This could be a costly mistake. Any accidents or mishaps to your property, the workers, people involved, equipment, and vehicles could be your financial responsibility, even if the service provider is at fault. For instance, you could be held liable if an uninsured service provider damages your property, vehicles, equipment, gets injured, or injures someone else while working on your project. This includes workers' compensation coverage. Contrary to what you might believe, even a one-person company can and should obtain workers' comp insurance. Without it, the service provider might bring legal action against you if they are injured or sustain damages while on your property. Asking for proof of insurance could make the difference in protecting you against potential liabilities.
The Importance of Proof
Always insist on proof of insurance and ensure it comes directly from the service provider's insurance agent. Unfortunately, it's not uncommon for uninsured service providers to send fraudulent documents that make it appear they have coverage when they don't. By getting verification from the agent, you ensure the service provider is genuinely insured, that you are working with a reputable provider, and that you are protected from potential liabilities.
The Risks of Uninsured Work
It might be tempting to save money by hiring cheap labor. A neighbor's kid, a handyman recommended by a friend, or someone from a local community board like NextDoor are great options to help do small jobs around the house. However, it's as essential for service providers to choose insurance protection as it is for you! Even if you're not paying them directly, these individuals could still be considered service providers under your homeowner's policy. Unfortunately, many homeowner's insurance policies don't cover liabilities or losses involving uninsured service providers. The very nature of insurance is to protect the people involved when the things we don't think will happen – actually do happen. Insurance wouldn't be needed if there were no accidents, but accidents do happen - when you least expect it.
For example, imagine hiring someone to do some plumbing work on your basement. Your neighbor recommended them because they did a great job on their house, but you are not sure if they have their own business or are working on the side. Without asking questions and acquiring proof of insurance, there is no assurance there is insurance in play. If something goes wrong—like your basement floods, your homeowner's insurance might deny the claim because you hired an uninsured individual. The cost of the repairs then falls entirely on you.
What happens if someone gets injured?
Why a Good Insurance Agent Matters
Having a trusted insurance agent is invaluable. They can guide you in understanding the risks involved in your chosen policy and the liability associated with hiring uninsured contractors. They should build confidence that you're fully protected in the areas that matter to you most. Connect with your agent at least once per year or after a life-changing event to stay aware of necessary changes or updates to your policy.
Before hiring a service provider, ask your agent to review your potential provider's proof of insurance if you have questions. At Be Green Pro, we believe all business transactions should be based on building a trusted partnership. Growing a relationship with your agent and contractors will help protect you, your family, and your assets from the unexpected.
The Reality of Workers' Compensation
One critical point to note is that the service provider’s workers' compensation policy might not cover a small business owner-operator. This is a separate plan altogether. This means that you would be liable for any injuries that occur while the service provide is on your property. Let’s say you decide to hire the owner/operator of a small landscaping business to mow your lawn. Suddenly, the mower blade engages while they are cleaning the deck, and their hand gets caught and a serious injury occurs. A non-insured transaction will leave you liable for the expenses of the accident and potentially the loss of the future income.
Additionally, workers' compensation does not cover damage to the property. That's where contractors' insurance comes in.
Don't Gamble with Your Property and Safety
Ultimately, hiring a fully licensed and insured service provider is not just about following the rules—it's about protecting your home, assets, and peace of mind. Cutting corners by hiring uninsured individuals might save you a few bucks upfront, but it could cost you dearly in the long run.
At Be Green Pro, we are proud to be fully state-licensed and insured. We ensure that every project we take on is completed safely, professionally, and with your protection in mind. We carry workers' compensation and contractors' insurance, so you're covered on all fronts. If you have any questions about our services or insurance coverage, please don't hesitate to reach out. We're here to help you enjoy your beautiful outdoor spaces confidently.
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