We are happy to present the 2nd installment of #WhyWT? Today we want to highlight the importance of proper Licensing and Insurances. When looking for a contractor, whether you are doing work inside or outside of your home, there are some key insurance and license types to watch for.
Does The contractor have a business license? That’s great, but not enough. They should also have a Contractor’s License. Contractor Licenses are broken down into 3 types, Class A, Class B, and Class C.
Class A: has an unlimited total value per single contract or project.
Class B: is limited to less than $120,000 total value per single contract or project.
Class C: is limited to less than $10,000 total value per single contract or project.
Each level of a Contractor License requires specific and proper testing to be obtained. You can check out the Virginia Department of Professional and Occupational Regulation website to make sure the person or company you are looking to hire has the proper licensing. For example, if you were to enter W T Anderson Corp into the search bar, it would show you that we are a Class A Contractor that is current on our licensing.
When choosing to hire a contractor, check that they are also properly insured. The 3 basic types of insurance to look for are Workman’s Comp, General Liability, and Umbrella.
Workman’s Comp Insurance protects employees under state laws, and provides for them if they are injured or killed while on the job.
General Liability covers claims arising from a liability due to damage or injury during performance of duties or business.
Umbrella insurance is extra liability insurance and it protects you when accidents happen and your existing liability insurance policies cannot cover all the expenses. Standard business liability coverage will take care of you in most situations, but when serious situations arise, commercial umbrella insurance will help ensure that their business is protected.
It is crucial that your contractor have at least Workman’s Comp and General Liability insurances so that not only their employees, but you and your home are protected in the case of an accident. You can request copies of a contractor’s up to date proof of insurance when you meet with them, or reference it when you call to make an appointment so that they make sure to bring a copy with them.
Licensing and Insurance sound complicated and like the last thing you want to think about or deal with in this process. But there is good news! A good contractor will already have this taken care of and all you have to do is ask for the proof. If you set up an appointment with our guys, they would show you that we are covered by all 3 of the insurance types mentioned.
We hope you found today’s #WhyWT? to be enlightening Don’t forget to check back next #TeaserTuesday when we will give you a hint for next week’s #WhyWT.