Why Should You Care If Your Contractor Has Workman's Compensation Insurance?

          One of the things you like about your contractor is that he's cheaper than all the rest right?
He's giving you a good deal. Or so you thought...

          The contractor you hire to trim your trees or repair your air conditioning system is supposed to carry workman's compensation insurance for their employees. If not, they could end up costing you every penny you have. Homeowners insurance usually only covers domestic employees like maids and babysitters, it does not cover work that should be performed by a licensed contractor. The homeowner is required to check and make sure that any laborer working on their property is covered. Most homeowners do not realize that they are personally liable if an uninsured worker is injured on their property.

California law is very clear:

            It is the homeowner’s responsibility to verify that repairmen and contractors are properly licensed and insured. If a homeowner hires a contractor who does not carry the appropriate liability and Workers Compensation insurance, the homeowner is liable if an accident happens.  

 

          There is an easy way to make sure a contractor is properly licensed and insured.

The Contractors State License Board makes it easy to check your service providers.

1. Go to CSLB.ca.gov

2. Search for service providers by business name, a worker’s name, or a license number.

3. Find out whether the contractor is properly licensed and insured, and whether they pay workman’s compensation for their employees.

          Above is a screen shot of a page from the Contractors State Licensing Board that shows what a properly insured air conditioning contractor in Los Angeles should look like. As you can see they are covered for worker's compensation. Every heating and air conditioning system installation contractor should carry workers comp, but many of them do not. 

Why don’t all contractors carry Workers Compensation coverage?

            Workers compensation coverage is expensive. A contractor who cuts costs by skipping it can offer a lower price than a contractor who insures his employees properly, however, a low bid can turn into a very expensive nightmare.

          Most of the time, accidents do not happen. But when they do, homeowners are ultimately responsible for what happens on their property. Protect yourself from irresponsible contractors by checking their credentials and their insurance history at CSLB.ca.gov.