Ellen Saperstein was looking to replace the roof on her home. She was concerned about the kind of contractor she wanted. After receiving a few recommendations she settled on a local but established contractor.
Ellen did something that we think is very wise. She asked the contractor for proof of insurance coverage. She wanted to make sure that not only did the contractor have general liability coverage but that he also carried workers compensation coverage. The contractor provided Ellen with a certificate of insurance when he quoted how much the job would cost.
Workers Compensation provides coverage for injury to an employee of the contractor while working on the job. Coverage is required by law, but sometimes employers don’t carry the coverage. But why would one care about the employees of a contractor?
What Ellen knew was that if an employee of the contractor is injured on her property it’s possible that her homeowner’s policy could respond and cover the employee. But Ellen knew that if the employer had workers compensation coverage any injuries suffered on the job were covered under that policy.
And as sure as the sun rises in the East and sets in the West an employee working on the roof lost his footing, fell through the attic, and went right through the sheet rock that covered the hallway below.
Fortunately for the employee the injuries suffered were not life threatening. And fortunately for Ellen her homeowner’s insurance didn’t have to pay a claim.
We mentioned in a previous blog post that you should obtain a certification of insurance. Now you know why.
One final note: Ellen is also a long time employee of Rue Insurance. She practices what she preaches.