You’ve wanted to renovate your cramped, outdated kitchen for ages. Or perhaps you are deciding between staying in your home after major damages or selling and walking away from some potential pricey repairs. Like many, asking around among friends and co-workers may initially help find and hire a contractor, but making sure your contractor is insured in Ohio is of vital importance.
Things can get ugly – and appallingly expensive – if your contractor isn’t insured. If things don’t go perfectly, you can land in a world of drawn out disputes, expensive fixes you have to foot the bill for, and far more stress than you initially bargained for. You can avoid such a situation, however, by making sure your contractor is reputable and fully insured.
Difference Between Bonding and Insurance
When hiring a contractor, it’s common to see the phrase “bonded and insured”—but what exactly does that mean, and why does it matter to homeowners?
A surety bond offers financial protection in case the contractor abandons your project, doesn’t complete the work, or delivers substandard results. Essentially, this bond ensures you won’t be stuck paying out of pocket or using your homeowner’s insurance if the contractor fails to meet their obligations. This is especially important for large-scale renovations or construction projects, where the financial risk is higher.
Bonded contractors are typically vetted through bonding companies, meaning they have met certain qualifications and financial criteria. This adds an additional layer of confidence when choosing someone to work on your home.
A contractor’s insurance, on the other hand, protects you from the costs associated with damages or legal claims. For example, if an accident during the project results in damage to your home or a worker gets injured on-site, the contractor’s insurance coverage ensures you’re not financially liable. Without proper coverage, these issues can result in costly lawsuits or repair bills.
What Kind/How Much Insurance?
Taking steps to ensure your contractor is insured in Ohio is essential—but not all insurance policies are equal. You must verify not just the presence of insurance but also its adequacy and scope.
First, assess whether the contractor’s insurance can cover significant damages. If your home is valued at $1.5 million, but the contractor’s policy only covers $500,000, you could be left financially vulnerable if things go wrong.
Your contractor should carry general contractor liability insurance with the following key coverages:
- Liability insurance – Covers injury to you, your family, or third parties and protects you from potential lawsuits.
- Workman’s Compensation – Provides medical and wage protection for the contractor’s employees if injured on the job. Note: not all states require this for smaller contractors, so it’s important to ask.
- Property damage coverage – Pays for any accidental damage to your home that occurs during the project.
These are the minimum standards for ensuring your property and personal liability are protected when hiring a licensed and insured contractor in Ohio.
Steps You Need to Take
So how can you be absolutely certain your contractor is properly insured in Ohio? Follow these steps to minimize risk and choose a reputable, trustworthy contractor:
- Check out the contractor with the Better Business Bureau – Look for any complaints, ratings, or patterns of behavior.
- Check references and talk to former customers – Ask about work quality, professionalism, and whether there were any insurance issues.
- Have a formal in-depth meeting with the contractor before signing any contract – Don’t rush into the project without clarity.
- Ask to see insurance and bonding documents – A legitimate contractor will gladly provide proof of bonding and insurance.
- Get everything in writing – Include work descriptions, deadlines, milestones, payment terms, warranties, and contingency clauses.
This level of due diligence protects you as the homeowner and ensures the contractor is fully accountable throughout the project.
How Does Your Contractor Deal With Subcontractors?
During home renovations—such as kitchen remodels, roof replacements, or home additions in Ohio—the general contractor often brings in subcontractors to complete specialized work like electrical, plumbing, or masonry.
Here’s where it can get tricky: if subcontractors are hired on a cash basis and not officially recorded, they might not be covered under the general contractor’s insurance or bonding policy. If one of these subcontractors causes damage or gets injured, you could be held liable.
Always ask your contractor:
- Are the subcontractors licensed and insured?
- Are they officially part of the project and listed under your contractor’s policy?
- Can you see documentation verifying this?
Ensuring insured subcontractors are on-site is just as important as verifying your primary contractor’s credentials.
Knowing how to make sure your contractor is insured in Ohio is a critical part of any home improvement project. Whether you’re investing in a small renovation or a large-scale remodel, don’t leave anything to chance. Speak with your local real estate professionals or home services experts for additional insights—they often have trusted contractor recommendations and can help you navigate the process with confidence.. Your local real estate professionals can also be a good resource when you’re checking out contractors.
If you’re still feeling overwhelmed and want to walk through all of your options, we would be glad to assist you! Feel free to contact us by phone at 937-998-4239 or fill out our contact form to get in touch.