2. Does the company carry insurance and is the coverage adequate?
When deciding on a contractor be sure that the company can provide specific, detailed information of their insurance coverage. They should be able to provide the name and phone number of their insurance agent so you can verify all required insurance is current.
This is the second most important question. Owners have been financially harmed by uninsured or inadequately insurded contractors.
Automatically eliminate any contractor without proper and adequate insurance.
A contractor should provide you with a Certificate of Insurance for Liability and Worker’s Compensation. The insurance should be adequate to cover your property.
Contractors may also carry other forms of insurance, such as health insurance and vehicle insurance. Do not be confused by these policies. Do not allow the contractor to pass them off as his proof of liability or workman comp insurance.
Call their insurance company and verify coverage!
A tell-tale pattern of an uninsured or underinsured contractor is the low-bid. Be very wary of the low-bid, you may have an uninsured contractor bidding the project.
Ask contractors about their Safety Plan, which is required by OSHA.
Professional contractors will readily provide you with a Safety Plan so you are protected. The Safety Plan is another tell-tale sign of professionalism or the lack of thereof.