What questions should consumers ask about insurance and bonds before hiring a contractor?

Consumers should make sure they only hire contractors who are licensed, bonded and insured. Check with the CCB to make sure the contractor’s license is currently active and that his/her insurance and bond are up to date. Check if the license allows the contractor to have employees. A license allowing employees (nonexempt) means the contractor has workers’ compensation insurance. This prevents a workers’ compensation claim against the owner of the property. If the contractor is exempt (has no employees), ask if he/she carries workers compensation for himself/herself. Consumers should ask contractors about any general liability exclusions. Consumers should also ask contractors about guarantees.

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