When hiring a contractor for any type of remodeling job, one of the most critical steps is evaluating their insurance coverage. Many homeowners overlook this step, assuming that a licensed contractor Dallas Handyman is automatically insured. However, state registration and policy are separate requirements, and working with an non-insured service provider can expose you to unforeseen legal exposure.

First and foremost, a reputable contractor should carry commercial general liability. This policy protects you, the property owner, from damages caused by the contractor’s work. For example, if a worker destroys landscaping, general liability insurance covers the resulting costs. Without this coverage, you could be held responsible for emergency remediation. Ask for a certificate of insurance that clearly states the policy limits, which should typically be at least one million dollars per occurrence for private property work and more substantial for public-facing projects.

In addition to general liability, contractors should have labor liability insurance. This coverage is legally required in the majority of regions if the contractor employs any employee. Workers compensation pays for medical expenses and income replacement if a worker is injured on the job. If the contractor does not carry this insurance and one of their employees gets hurt on your property, you could be targeted in litigation, especially if you are found to have been ignoring red flags. Always confirm that workers compensation is included in the documentation and that it is active.

It is also important to check the policy’s coverage window. Insurance policies can lapse if premiums are not paid on time, and some contractors may provide outdated documents to appear compliant. Request a certificate issued no more than 30 days before the start of work, and confirm with the insurance company directly if you have any doubts. Most insurance providers offer web-based confirmation systems where you can enter the contractor’s business name to validate coverage.

You should also inquire about extended endorsements depending on the nature of the project. For instance, if the work involves excavation, the contractor should have toxic substance protection. If they are using their own vehicles on your site, business vehicle protection is necessary. Ask for a comprehensive summary of all policies and don’t hesitate to ask for explanations if you don’t understand the terms.

Avoid accepting handshake confirmations or a contractor’s word alone that they are insured. Always insist on legally binding records. If a contractor offers excuses, that is a major red flag. A reputable contractor will have no problem sharing their insurance certificates and will even offer to send them directly from their insurer to demonstrate transparency.

Finally, consider speaking with your own renters insurance provider. Some policies may offer limited protection if a contractor causes damage, but this is rarely sufficient and often comes with fine print. It’s far better to ensure the contractor’s insurance is strongly sufficient, so you’re not left facing financial loss.

Taking the time to evaluate a contractor’s insurance coverage is not just a precaution—it is a critical safeguard in protecting your property, your well-being, and your rights. By verifying all necessary policies, checking expiration dates, and understanding what each policy covers, you reduce the risk of hidden costs and ensure that your project proceeds with professional assurance.