Why It’s Important: You need to know if your contractor carries general liability insurance for both commercial and residential projects. A sizable contractor will carry no less than $500,000… and usually around $1,000,000 of coverage. If your contractor’s insurance policy can’t cover potential damages, then the contractor would be personally liable. If he cannot cover the damages himself, you will have no legal recourse and will end up paying for any possible damages or injuries yourself. Many contractors are not financially stable…and don’t carry proper insurance coverage to protect you against losses. Additionally, contractors who fail to provide workers compensation benefits risk severe governmental penalties and potentially company- ending lawsuits should an employee become injured.

Payless Kitchen Cabinets carries $1,000,000 of general liability and $1,000,000 workers compensation coverage and here’s the certificates to prove it! Do NOT deal with a contractor without sizable coverage, or you will foot the bill for the mistake.