Hiring guide
Insurance, warranties, and liability, explained
Insurance and warranties are where a bad hire shows up later. This guide explains the coverage a contractor should carry, the difference between manufacturer and workmanship warranties, and how to protect yourself in writing.
Liability insurance
General liability insurance covers damage the contractor causes to your property. Ask for a certificate of insurance and confirm the policy is current and names the contractor's business. If the certificate is missing, treat it as a red flag.
Workers' compensation
Workers' compensation covers injuries to the crew on your property. In Georgia, if a worker is injured and the contractor has no coverage, the claim can come back to the homeowner. Ask specifically whether the crew is covered.
Manufacturer warranties
Equipment like water heaters, HVAC systems, and roofing materials carry manufacturer warranties that cover defects in the product. These are separate from anything the contractor promises. Keep the registration paperwork and the receipts.
Workmanship warranties
A workmanship warranty covers the quality of the installation or repair. Roofers, painters, and remodelers commonly offer one, but the terms vary widely. Get the duration and the coverage in writing before you sign.
Put it in writing
Verbal promises about warranty coverage are worth nothing when a dispute arrives. Ask for the warranty terms in the contract, and confirm what you must do to keep the warranty valid, such as annual maintenance.
Key takeaways
- Ask for a current certificate of insurance before work starts
- Confirm the crew is covered by workers' compensation
- Know the difference between manufacturer and workmanship warranties
- Get every warranty term in writing
- Keep receipts and registration paperwork for covered equipment