Are the people you do business with insured? You might want to ask them. If a vendor, contractor, cleaning crew, gardener/arborist, or other service provider does not have insurance, you may be out of luck if they cause property damage or injury. Also, people who do not carry insurance are probably less likely responsible than those who are insured. They may not be the ideal people you would want to hire. It’s worth paying a little more to get someone who is insured.
Never just take the word of a vendor. Many who are not insured may say “yes” because it’s likely they don’t want to embarrass themselves. Instead, ask them to have their broker send a certificate of insurance. By having their broker send (fax or email) it to you, you know the policy has been paid for and has not been cancelled.
Some vendors, especially small firms, will try to convince you that they do not need insurance. Do not fall into this trap as you will be letting an amateur convince you to purchase product or service that lacks the protections an insurance policy provides. As a courtesy to existing clients, we can give you advice on any insurance certificate that is emailed or faxed to us. Suggestions on who you should request insurance certificates from:
- Contractors who are working on a home or commercial remodel
- Repair or installation service for your auto, home, or business
- Service contractors, such as gardening and maids/cleaning services
- Independent Contractors or Contract Employment
- Professional Services, such as such as a CPA, Consultant, Mortgage Broker, Staffing Firm, Insurance Broker, Architects/Engineers, and others who provide professional services (professional liability)
- People who rent or lease from you
Types of Insurance you should request:
- General Liability
- Workers Compensation – for operations that have workers on your premise
- Commercial Auto Coverage – for those who use vehicles on the job
- Professional Liability (Errors & Omissions Insurance) – for those who provide professional services
Should you request a certificate for every purchase? It’s your call, but if someone is entering your premise or you are purchasing a bigger ticket item, you should strongly consider asking for insurance documentation.