3 Essential Documents that Your Contractor Should Have

​In finding a contractor, you should criticize not only the quality of their products and services but also the legitimacy and experiences they have in the industry. Before signing any contracts, know if your contractor has proof of licensing, bonds and insurance, and other permits and certification of their business. It is a complicated task to find a long-time contractor that you can trust, but it is not too hard either with these three necessary documents that your contractor must provide.

1. Bonds and Insurance
   If your contractor can buy a pledge through a surety company, then it is a significant advantage for you. This contract serves as an agreement between you, the contractor, and the issuing agent to be completed according to the terms agreed by both parties. If you want to be protected from costly casualties, you can ask your contractor to provide general liability and worker’s compensation insurance. The first one covers damages to your property, while the latter pays any injured employee while working on the job site. Although general contractors can pick out workers’ compensation for themselves, they should also provide it even with only one employee.
   
   
2. Subcontractors Insurance
   If you have any subcontractors working on your project, may it be a plumber or electrician, you should also confirm whether they have insurance, license, or a bond. Insurance experts recommend you to ask if you can be an additional insured on your contractor’s policy. This method will not only extend your coverage as the client but also ensures the validity of your contractor’s insurance. If your chosen contractor is reluctant to provide answers to these inquiries, consider looking for another one.
   
   
3. Lien Waiver Clause
   If you don’t want to get scammed or be bombarded by unexpected fees or liens against your property, you might need to ask for a lien waiver clause for the project contract. Having a lien waiver may seem unnecessary, it ensures the proper and legal completion of your project, like parties signing off and stating that contract obligations have been met, which includes general contractor payments for materials, suppliers, subcontractors, or vendors.

It is crucial for any type of project that contractors provide licensing and certification requirements for their industry. This necessity is not only a want but also a need as your municipality or state may mandate a more general licensing.

At Black And Associates Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (509) 464-0058. You can also request a free quote by CLICKING HERE.