Cantor’s Corner: License, Bonding & Insurance Requirements
by Gregg Cantor Resident Pro, The Approved Home Pro Show
President, Murray Lampert Design, Build, Remodel
To be a legitimate home improvement contractor, licensing, bonding, insurance and EPA lead certification is required by law. Any contractor completing home improvements other than a sole proprietor, must carry worker’s compensation insurance on all employees as well. General liability insurance is not required by law.
As a homeowner, don’t leave yourself at risk by hiring any contractor without coverage. With Approved Home Pros, you know that we have thoroughly checked out companies in advance for you. Anyone else, you need to verify licensing, bonding and insurance on your own by going to the contractor’s state license board website.
For proof of general liability, make sure to ask for a certificate of insurance naming you as additional insured. I also recommend asking the contractor if they work alone. It’s common for contractors to claim exempt to avoid paying insurance. This leaves you liable if someone gets injured on your property.