The state of CT is considering a bill that would require contractors to maintain commercial general liability insurance. Currently, there is no such requirement for contractors to have insurance to get or renew their licenses, and by our informal survey most homeowners do not ask for proof of insurance from contractors that work on their property and in their homes. Contractors know this, and some choose to operate without insurance.
The bill under consideration (H.B.5425) would require contractors to provide proof of insurance at the time of their licensing and at the renewals of their licensing. It would not be foolproof, so here’s some free advice: Ask any contractor to provide a Certificate of Insurance naming you, the property owner, as the Certificate Holder. Make sure it shows a current date, is signed by the agent and is sent to you directly from the insurance agent of the contractor; not forwarded to you through the contractor as those certificates can be altered. An electronic version should be fine. Contact us if you want to get into more detail about what exactly is a Certificate of Insurance, limits of coverage to look for, what this all means, and when you should ask for that certificate to show proof of Workers’ Compensation coverage and additional other coverages.