Part One: How to Properly Protect Yourself – Legal Checklist for Hiring Contractors

Part One: How to Properly Protect Yourself – Legal Checklist for Hiring Contractors

Not all quotes are created equal. It can be hard to know how to compare a quote if they are written or laid out differently. Evaluating an estimate can be complicated because some quotes may look similar at first but the products or application approach may be very different with significant quality implications. It’s imperative to know what you are looking at, or what is missing from the quote.

We created a “how to” guide to understand a quote so you know exactly what to look for.

• Contractor’s License in Rhode Island. Does the contractor have a current Contractor’s License in the home state, if required? You can search the RI database online to find out. If a contractor has a history of ripping people off they will lose their license. It is illegal to operate in RI without a valid Contractor’s License.
• Liability Insurance. It is also illegal to operate in RI without a minimum of $500,000 in liability insurance, according to state law. Verify that the contractor has a valid certificate of insurance for at least $1,000,000. This will help to protect you from potential legal issues if an accident occurs on your property or someone is injured. You should be able to verify that a valid insurance certificate is available upon request.
• Worker’s Compensation Insurance. If the business has employees it is required to have worker’s compensation insurance in Rhode Island. This protects you in the advent of anyone getting injured on your property. It’s always a good idea to double check that all employees are covered.

A professional quote should mention somewhere that the contractor is “Licensed and Insured.”  This refers to the Contractors License and Liability Insurance.