Roofing Contractor Insurance
Selecting a roofing contractor is already a task for homeowners in that they have to pick one that not only has enough years of experience, but that they also have the right licenses, and the proper roofing contractor insurance coverage.
How Much Insurance Does a Contractor Need?
In Florida, state certified contractors are required to carry a minimum of $300,000 in liability insurance in order to obtain licensing. However, this amount seems pretty small when you consider what kind of exposure it can create for a homeowner. For example, if a homeowner selects a contractor with $300,000 in liability coverage, and say an accident occurs where the jobsite accident ends up in a $600,000 award to the victim(s) in court, then according to Harvey Cohen of the Cohen Law Group, even after the $300,000 and the few equipment assets of the contractor, the homeowner may face the liability on the difference.
How Much Insurance Should My Contractor Carry?
We can't speak for other contractors in the trade, but Corporate Construction & Design Inc. carries $1,000,000 per Incident and $2,000,000 aggregate insurance coverage. As a general contractor and a roofing contractor, it is reasonable to carry reliable amounts. One because we just don't believe you should operate at $300,000. And second because a quick analysis of previous cases involving contractor related injuries will quickly reveal that the amounts are rarely ever below $300,000.
Why Would The State Make The Insurance Minimums So Low?
That is a great question and why Harvey Cohen quotes a famous line “If you don't exercise your rights, some else will do it for you.” It would be a great idea if homeowners made their voices heard requiring the minimum insurance coverage to be higher because each job done with undercoverage where the liability exceeds coverage may land squarely on the homeowners.