Why You Need a Remodeler Who Has General Liability

Imagine a pipe bursts behind the wall halfway through your remodel, or a neighbor trips over equipment left in your driveway and gets hurt. You assume the contractor's insurance will cover it, only to learn they don’t have general liability. Suddenly, you're responsible for covering the damages or injuries.

Shugarman's Bath has completed over 7,000 tub and shower remodels. Every single project is backed by general liability insurance. That way, homeowners aren’t left on their own for damages or injuries that aren’t their fault.

This article explains what general liability insurance covers and how to confirm your contractor carries it before any work begins on your home.

Table of Contents:

• What Does a General Liability Policy Cover in a Remodel?
• Why Are You on the Hook If Your Contractor Isn't Insured?
• How Big Can a General Liability Claim Get With a Remodel?
• Does the CSLB Show If a Contractor Has General Liability Insurance?
• Mistakes Homeowners Make When Hiring an Uninsured Contractor

What Does a General Liability Policy Cover in a Remodel?

General liability policies exist to pay for losses to a third party, protecting against claims of bodily injury and property damage the contractor’s work might cause. For home remodeling, the insured (the contractor) and the insurer are the first two parties. The third party would be you, the homeowner.

Some general liability policies only cover damage that happens while the crew is on the job. Others might cover problems that show up after the work is finished, like a leak in the tub and shower area months after you’ve had a bathroom remodel.

Before you sign anything, ask whether their coverage applies only during the job or extends to problems that show up later.

Why Are You on the Hook If Your Contractor Isn't Insured?

When you hire someone to work on your home, the law can hold you responsible for what happens there. This comes from a legal doctrine called respondeat superior, which means the person in charge can be held responsible for the actions of people working for them.

If someone outside the contracting relationship is injured because of work done on your property, and the contractor has no insurance to cover it, that person can look to you for payment instead. The same risk applies if you hire a friend, a neighbor, or anyone without a written contract. You have less protection if something goes wrong.

How Big Can a General Liability Claim Get With a Remodel?

A property damage claim to your home usually has a clear price tag. Once the costs of the damages and repairs are paid, the claim is closed.

Injury claims are more complex because a severe injury could mean years of both medical care and lost income. That total can exceed what a homeowner could ever pay out of pocket, and bankruptcy won't erase the debt.

Does the CSLB Show If a Contractor Has General Liability Insurance?

Sometimes a contractor’s general liability insurance will be on the Contractors State License Board (CSLB), but this isn’t always the case.

A CSLB listing can also change over time. A contractor in good standing today can have their insurance lapse later, and the update won’t show up right away.

More importantly, a contractor should explicitly state in their contract that they have a general liability policy. You can request a certificate of insurance either from the contractor or their agent.

A signed remodeling contract is legally binding. A contractor could have coverage the day they sign a contract, then cancel it the next day. If the coverage they promised is missing, you have grounds to pursue them for breach of contract.

A contract with no mention of general liability insurance is a bigger deal than anything you don’t find on the CSLB website. You always need something in writing to hold the contractor to.

Shugarman's Bath states this directly in every contract, along with the insurer, the insurance agent, and their contact information so you can request a certificate of insurance.

Mistakes Homeowners Make When Hiring an Uninsured Contractor

Here are some examples homeowners make:

• Assuming a small job is too minor to need insurance.
• Relying on a verbal agreement instead of getting things in writing.
• Trusting a CSLB listing by itself to confirm a contractor's coverage is active today, but not confirming it in a contract.
• Assuming a subcontractor's work is automatically covered by the main contractor's insurance.
• Feeling like it's awkward to ask for insurance, or not asking at all.
• Letting a contractor begin work before confirming they carry general liability insurance.

If a contractor can't confirm they carry general liability insurance, the safest move is not letting them on your property. You could be held responsible for whatever happens in your own home.

The Right Contractor Protects You and Your Home

You don’t need to be an insurance expert before your remodel begins. All you need to do is make sure the contractor you’re interested in has coverage in writing. Don’t find out after something goes wrong.

Now that you know why you need to hire a contractor with general liability insurance, read our guide on how to find the right contractor for a tub or shower remodel so you know what else to look for.

If you have questions about our general liability insurance, other coverage we carry, or general inquiries about tub and shower remodels, contact Shugarman’s Bath today to speak with an expert.