How do you protect yourself when dealing with a contractor?

To ensure that you are protected from start to finish, always follow these protocols before hiring and obtain proof of bond, licenses and insurance. Don't base your decision solely on price. Beware of pressure and fear tactics. To protect yourself, make this simple and sensible request.

Ask the contractor to include in the contract a copy of the payment to the suppliers within a few days of paying the deposit. This way, you'll know that your money is being spent on your work. Get insurance certificates for liability insurance and workers' compensation insurance. To protect yourself from the problems of a construction project, hire a competent, reputable contractor that you feel comfortable working with.

Ask how much liability insurance costs for a contractor from multiple insurance companies before deciding on the ideal insurance policy for your business. The Home Improvement Consumer Protection Act (HICPA) provides homeowners with certain protections against For this reason, make sure you have all the details necessary to legally protect yourself as a contractor. If you end up dealing with contractor fraud, contact an experienced lawyer to learn about your legal options. Protecting yourself as a contractor isn't limited to getting the answer to how much liability insurance costs a contractor.

In addition, to legally protect yourself as a contractor, you can sign a non-compete agreement with your clients or give them one to sign before working together. If it's a very small job and the paperwork is more than your contractor can handle, you can offer to download and complete a tax exemption for your contractor to sign. Protect yourself from the start by asking for the names of the professionals your contractor will work with. I want to tell the world how bad a relationship with a home improvement contractor can be and how you, as a homeowner, can protect yourself.

This will legally protect you and your client and let them know how much liability insurance is for you as a contractor throughout the project. The contractor's agreement is just to protect yourself and your company from bad faith home renovators, communication problems, and Murphy's Law. This will legally protect both parties and let you know exactly how much liability insurance costs for a contractor throughout the project. For guidelines approved by the Federal Emergency Management Agency (FEMA) on how to protect homeowners when hiring general contractors, see their checklist here.