The laws in Georgia are changing. More and More contractors are now getting licensed in Georgia. The licensing process is requiring the contractor to prove insurance at the time of licensing. Our experience as agents is the policy is terminated shortly after licensing.
Making the assumption that "Licensed" means "insured" is a faulty assumption.
If you choose to find a "Licensed" contractor, do take the normal steps to have the contractor prove they are insured. How do you prove coverage?
- Do not have the contractor show you a document of coverage (acord 25)
- Do have the Insurance agent or the Insurance company fax over a proof of insurance certificate. 1-800 lines to customer service or local calls to the local agent should position you with the proof needed that the policy was not canceled.
If the contractor is going to work for you on a consistant basis, consider having your name added as "additionally insured". If there is a contractual relationship between you and the contractor requiring your name being "additionally insured" should result in "no cost" to make the change.
Bottom-line, making assumptions of coverage can be costly. Using un-insured contractors for yourself or ordering contractor services on the behalf of the customer could position you to be liable... Imagine a punch list for closing. The realtor contacts a contractor to do the work and include the bill at closing according to the contract. But, during the repairs the contractor causes damage... The un-insured contractor could position the realtor to be the focal point for liability.
Insurance topics that make you think....