NLIC.org

Ida Said:

What does a Contractor's liability insurance cover?

We Answered:

~~A contractor who has liability insurance has to cover any damage done to a homeowner. Speak with him and get his information.

If he isn't willing to give it to you, then contact your state's contractor licensing board. They will give you the information. There is no reason to file a claim with your homeowners if the contractor did the faulty work that broke your electronics.~~

Melinda Said:

What does liability insurance cover for an electrician?

We Answered:

You have 2 issues here- 1 injury to the electrician and 2 injury to your home. Being licensed does not affect liability.

1) The electrician should carry workers compensation to cover his injuries while he is on the job. (some states allow him to file an exemption from coverage)

2) He should have a general liability policy to cover "bodily injury and property damage" for which he is "legally liable" - in english this policy covers if the ladder falls and breaks a window - and it would cover you if the ladder fell on you and you needed medical attention.

You should ask for a "certificate of insurance" It will have lots of sections including general liability, auto, garage, excess, and work comp. The sections filled in show coverage he has purchased.

Dana Said:

What does liability insurance cover for an electrician or other contractor?

We Answered:

liability insurance generally covers damage to your home or property by the contractor. if he is covered by workers compensation then he is also covered for injuries. the general rules for workers comp are if you are the proprietor and the sole employee then you dont have to be covered by workers comp, but if you have even one employee, including family members , then you MUST have workers comp. if the contractor is covered he will have registration numbers

Dolores Said:

what does liability insurance cover?

We Answered:

Liability insurance is the minimum coverage required by law. In case of an accident it will cover the other party up to its limit, and your car gets nothing! No coverage for yours.

Eileen Said:

What does General Contractor Liability Insurance Cover?

We Answered:

What color is a car? Well, there's more answers to your question than mine!

BUT, insurance won't cover job performance, or lack thereof.

What you're looking for is called a PERFORMANCE BOND. It specifically covers you, and describes the job, and pays out if the contractor doesn't finish the job on time. There's another bond you probably also want - a PAYMENT bond. That pays out, if the general contractor doesn't pay the subs, like they're supposed to. Otherwise, YOU have to pay the subs.

If you don't have a payment and/or performance bond, general liability does NOT cover shoddy work, or paying the subs, or finishing the job. Or even, damage to their own work that they do (oops, I dropped a hammer which broke the $5,000 bay window, looks like you have to buy another one!).

Tamara Said:

What does liability insurance cover for a contractor?

We Answered:

If he is insured, then that means any damage he causes you should be taken care of by his insurance. If he injures himself in your home then there may be a chance that you are liable. I'm not completely sure. If an electrician get electrocuted, then that is probably his own fault and you should be free of liability in that case. People can sue people for anything nowadays though.

Byron Said:

What does auto liability insurance cover?

We Answered:

As an insurance broker I can tell you that liability insurance is about treating the well being of another person that might get hurt through your actions - accident where you hurt the other driver.
Any other claim- like any fender bender in a parking lot will be covered by that persons insurance, but if you caused it , your insurance company will add this claim to your record effectively increasing your premium for every accident.
Your vehicle is only covered if you purchased liability coverage, minus your deductible.

Alec S. The Insurance Broker