In our area, it is very common for homeowners to add beautiful landscaping to their homes. It adds value and makes your home a bit more special. However, some situations lead to costly problems for property owners. Take this situation, for example.
A homeowner decides to invest a significant amount of money into the landscaping around the home, including adding a deck to the property and flower beds. The plans are great, the city approves them, and the project gets started. The contractor on the job makes a mistake in judging the property, a beam from the deck falls and hits the employee in the head. The employee is rushed to the hospital, suffers a minor injury, and then sues the property owner for the medical bills. How does this happen?
If you do not do your homework in advance of hiring a contractor in Minnesota, you end up responsible, as the property owner, for the accidents occurring there. This is not an uncommon problem, but it is one you can prevent.
What Type of Contractor’s Insurance Do They Need?
The best way to avoid this type of risk is to ensure the company you hire to handle the work at your home is properly licensed and insured. You will want to learn about the company’s reputation and gather insight into other claims people have made against them. But, when it comes to accidents like this, here’s what to consider first.
#1: Know the Workers’ Comp Laws
Workers’ compensation is a form of insurance all businesses in Minnesota are required to carry. This includes small companies. They purchase it form a commercial provider, though some companies can self-insure (this is not common). This type of policy helps to make sure the employee’s injuries are covered.
#2: General Liability Insurance Requirements to Look For
Every business also needs commercial general liability insurance. This helps to cover claims from other parties for injuries or losses. In this example, the company may be responsible for the damage to the deck or landscaping. This can be an expensive repair. Some companies have other forms of liability insurance also to cover this type of loss.
#3: Check Your Insurance
This is one area where our team at Krog Insurance can help you. If a mistake occurs, you want to be sure your home insurance offers adequate protection for you from loss. Let our team take a closer look at your policy before you hire a contractor. It could be one of the simplest ways to gain some peace of mind before a project like this.
#4: Check Their Certificate of Insurance
Many companies state they are insured, but unless you see their Certificate of Insurance, you cannot verify this. It takes just a moment, and a reputable company will have no problem giving you this information.
#5: Determine If They Need Other Coverage
Depending on the type of work they are doing, you may want to find out if the company has commercial auto insurance, builder’s risk insurance, and professional liability insurance (especially if they are providing advice to you).
Where to Start Before You Hire
If you are thinking about a landscaping project, give us a call. You also want to let your home insurance agent know about the changes you make to your home. At Krog Insurance, we will need to verify you have enough coverage to protect these assets going forward. And, we can also check out the contractor’s coverage for you as well.
