A contractor’s license is the most basic, entry-level proof that they are a legitimate business. While specific requirements vary, a license generally proves:
- They are Registered: They have registered their business name with the statei and/or local municipalities.
- They are Traceable: They have a real tax ID and a business address (not just a cell phone). This is your first line of defense against “fly-by-night” storm chasers who take your deposit and disappear.
- They are Accountable: It means the state and local authorities know who they are, and there is a public record of their business.
Hiring an unlicensed contractor is like handing your keys to a stranger. If something goes wrong, you have little to no recourse.
Part 2: The Most Critical Component: “Insured”
This is the big one. A contractor’s insurance is not for their protection; it is 100% for your protection. When you hire an uninsured contractor, you become their insurance policy.
There are two separate policies you must demand proof of.
A) General Liability (GL) – Your Property’s Armor
- What It Is: This is insurance that covers damage to your property or a third party’s property, caused by the contractor or their crew.
- Why It Matters (The “What If”):
- What if a worker drops a hammer from the roof that shatters your car’s windshield?
- What if a tarp isn’t secured and a gust of wind sends debris flying, damaging your neighbor’s siding?
- What if a ladder slips and crashes through your new bay window?
- The Uninsured Risk: Without GL insurance, the contractor has to pay for this out of pocket. If they (predictably) refuse or can’t afford to, your only options are to pay for it yourself, file a claim on your own homeowner’s policy (which can raise your rates for years), or try to sue them. A contractor with active GL insurance simply files a claim, and the repair is handled.
B) Worker’s Compensation – Your Financial Shield
- What It Is: This is insurance, paid for by the employer, that covers the medical bills and lost wages of their own employees if they are injured on the job.
- Why It Matters (The Ultimate “What If”):
- Roofing is one of the most dangerous jobs in America.
- A worker is on your roof. They slip and fall, breaking their leg (or worse).
- If the contractor has worker’s comp, their insurance covers the worker’s medical bills and disability. The homeowner is not involved.
- The Uninsured Risk: This is the one that can lead to financial ruin. If the contractor has no worker’s comp, that injured worker has catastrophic medical bills. Their lawyer will look for any available source of payment, and the deepest pocket is the owner of the property where the injury occurred: you. You can be pulled into a massive lawsuit, and your homeowner’s insurance may even fight to deny the claim, arguing that you knowingly hired an uninsured contractor, which violates the terms of your policy.
The AR Roofing Promise: “Don’t Just Ask, VERIFY.”
A true professional will never be offended if you ask for their paperwork; they will be proud to show it.
- Ask for a “Certificate of Insurance” (COI): This is a one-page summary from their insurance company that lists their policy types (GL, Worker’s Comp) and the coverage limits.
- Check the Dates: Make sure the policy is currently active and hasn’t expired.
- Call the Insurer: The certificate will have the insurance provider’s name and phone number. You can call them directly to verify the policy is real and in good standing.
At AR Roofing, we are a fully licensed company with a permanent offices in four cities. We carry (and will gladly provide proof of) full General Liability and Worker’s Compensation insurance. It’s not “overhead”; it’s a non-negotiable part of our promise to protect our customers.
