Jane Dotson
When hiring a contractor, it is important to ensure that they are licensed and insured. This is because, as the homeowner, you may be held responsible if a contractor is injured while working on your property and is not insured. To check if a contractor is insured in Florida, you can ask for their certificate of insurance and contact the insurance company to confirm that the policy is up-to-date and covers your project. You can also check your state's licensing board website or contact the state's licensing department to verify the contractor's license. Additionally, it is important to check if the contractor is bonded, which provides protection in case the contractor fails to complete the job or does not meet the expected standards. Checking online reviews and references from previous clients can also help you assess the contractor's reliability and quality of work.
| Characteristics | Values |
|---|---|
| How to check for insurance | Ask for a certificate of insurance, then call the insurer to check that the policy is up to date and covers your project. |
| How to check for a license | Check with your local contractors' association or building department, or your state's licensing board. In Florida, go to MyFloridaLicense.com, a database managed by the Florida Department of Business and Professional Regulation. |
| How to check if bonded | Ask for the certification and bond number, then contact the bond issuer to check it's valid. |
| What to do if there's an issue | File a complaint with the Department of Business & Professional Regulation at www.myfloridalicense.com or by phone at (850) 487-1395. |
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What You'll Learn
Ask for a certificate of insurance
When hiring a contractor, it is important to ask for a certificate of insurance to ensure that they are insured. This is a crucial step to take before finalising any contract with a contractor as it helps to protect yourself and your property in case something goes wrong during the project.
Asking for a certificate of insurance is a way to verify that the contractor has the necessary insurance coverage for the work they will be performing. This is important because different projects may require different types and levels of insurance. For example, a roofing project may require the contractor to have general liability insurance and worker's compensation insurance to protect you from any liability in case of accidents or injuries during the project.
By requesting a certificate of insurance, you can be sure that the contractor's insurance is active and valid. This certificate should include important details such as the insurance company's name, the policy number, the effective dates of the policy, the type of insurance coverage, and the limits of the coverage. It should also specify whether the policy is a general liability policy, a worker's compensation policy, or any other type of insurance coverage.
Once you have obtained the certificate of insurance from the contractor, it is equally important to take the additional step of verifying the information with the insurance company. Contact the insurance provider directly to confirm that the policy is still in effect and that it provides adequate coverage for the specific project you are hiring them for. This extra step can provide you with peace of mind and help ensure that you are protected in case of any unforeseen issues or incidents during the course of the project.
In addition to checking for insurance, it is also recommended to verify the contractor's license and bond. You can check their license by searching for their name or license number on your state's licensing board website or by contacting the state's licensing department directly. Checking for a bond will provide you with additional protection in case the contractor fails to complete the job or meet the required standards. By taking these comprehensive steps, you can help ensure that your project proceeds smoothly and that you are protected from potential financial liabilities.
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Verify the policy is current
Verifying a contractor's insurance policy is a crucial step in ensuring you are protected from any potential liabilities or issues that may arise during the project. Here are the steps you can take to verify that a contractor's policy is current in Florida:
- Request proof of insurance: Ask the contractor to provide you with a certificate of insurance or an insurance certificate. This document will indicate the type of insurance coverage they have. It is also a good idea to ask for their policy number.
- Contact the insurance provider: With the information obtained from the certificate of insurance, take the initiative to call or contact the insurance company directly. Inquire about the validity and currency of their insurance policy. Confirm that their coverage is up-to-date and aligns with the timeline of your project.
- Verify the scope of coverage: Ensure that the contractor's insurance policy adequately covers the specific work you require. Different projects may have unique considerations, so clarify with the insurance provider that the contractor's insurance includes the necessary protections for your project.
- Check online databases: Florida maintains an online database of licensed contractors at MyFloridaLicense.com, managed by the Florida Department of Business and Professional Regulation. You can search for the contractor by name or company name to verify their license and insurance information.
- Consult local resources: Contact your local contractors' association or building department to verify the contractor's license and insurance. They can provide insight into whether the contractor meets local regulations and requirements.
- Review references and reviews: Speak with previous clients of the contractor to understand their experience. Ask about the quality of work, timeliness, and overall satisfaction. Additionally, check online reviews to gauge the contractor's performance and customer service.
By following these steps, you can confidently verify that the contractor's policy is current and adequate for your project. Remember, it is essential to protect yourself and your property by ensuring the contractor has active and appropriate insurance coverage.
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Check if the contractor is bonded
In Florida, contractors are required to be licensed to ensure construction projects are executed safely, correctly, and in compliance with state laws. However, being bonded is not a requirement for obtaining a contractor's license in Florida. Nevertheless, it is beneficial to hire a bonded contractor as bonding provides financial protection if the contractor fails to complete the job or meet other obligations.
A bond is a type of insurance or guarantee that holds the contractor accountable for the promises they make to their customers. It ensures that the contractor completes contracts and does not financially harm their customers. If a contractor is found guilty of any financial harm or fails to complete a job, a claim can be made against the contractor's bond for financial repayment, up to the bond amount.
To verify if a contractor is bonded, you can follow these steps:
- Ask the contractor for their bond information, including the bond company's details.
- Contact the bond company to confirm the validity and status of the bond.
- Check if the bond meets the local requirements. In Florida, bonding requirements vary at the county and city levels. The state Construction Industry Licensing Board, part of the Florida Department of Business and Professional Regulation, requires applicants for a Florida construction license to obtain a bond if they need to prove financial responsibility. This is typically required if the contractor's FICO credit score is below 660.
- Verify the bond amount. The bond amount varies depending on the type of work performed by the contractor. Division I contractors in Florida, for instance, must post a $20,000 bond, while Division II contractors need either a $10,000 or $5,000 bond.
- Understand the cost of the bond. The bond premium or cost is calculated as a percentage of the total bond amount, typically ranging from 1% to 10%. A higher credit score generally results in a lower premium.
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Verify the contractor's license
Verifying a contractor's license is a crucial step in the process of hiring a contractor. While most states regulate contractors, the specific regulations vary across states, counties, and cities. Here are the steps you can take to verify a contractor's license in Florida:
Check Online Databases:
In Florida, you can verify a contractor's license by visiting MyFloridaLicense.com, a database managed by the Florida Department of Business and Professional Regulation. This website allows you to search for licenses by entering the contractor's name, company name, or license number. This database ensures that contractors are licensed and meet the required standards.
Contact Official Departments:
If you prefer, you can also verify a contractor's license by contacting the relevant authorities. You can call the Florida Department of Business and Professional Regulation at (850) 487-1395 to inquire about a contractor's license. Additionally, you can contact your local contractors' association or building department to confirm the validity of a license.
Request License Information:
When interacting with a potential contractor, don't hesitate to ask for their license information directly. You can request their trade license number and any other relevant certifications. A reputable contractor should be transparent and willing to provide this information.
Verify Insurance and Bonding:
In addition to licensing, it is crucial to check that the contractor has adequate insurance and bonding. Ask for proof of insurance, such as a certificate, and then contact the insurance provider to confirm that their policy is active and covers the type of work you require. Additionally, inquire about bonding, as this provides protection if the contractor fails to complete the job or meet your specifications.
Consult with References:
Before making your final decision, it is beneficial to seek out references from previous clients of the contractor. Contact these references to inquire about their overall experience, including the timeline, budget, and quality of work. This will help you gain a better understanding of the contractor's reliability and craftsmanship.
By following these steps, you can ensure that the contractor you hire is properly licensed, insured, and capable of meeting your needs. Remember, verifying a contractor's license is a crucial step in protecting yourself and your property during any construction or renovation project.
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Check online reviews
Checking online reviews is a great way to ensure that a contractor is insured in Florida. Websites such as Billy.com provide information on how to check a contractor's license, a list of local contractors' licenses, consumer ratings, reviews, and references. This makes it easier for homeowners to find a suitable contractor without needing to call each one individually.
Beyond checking such websites, you can also ask for a potential contractor's trade license number and proof of bonding or other insurance. After obtaining this information, you can verify the license with your local contractors' association or building department. You can also visit your state's licensing board website or check your state's online database of licensed contractors. In Florida, this can be done by visiting MyFloridaLicense.com, a database managed by the Florida Department of Business and Professional Regulation. Here, you can enter the contractor's name, company name, or license number to verify their license.
It is also important to understand the terminology used when checking a contractor's license and insurance. A "licensed" contractor has a trade license that meets local regulations and typically needs to prove they have insurance. A "registered" contractor has paid a fee to the state or local government and proven they have insurance but hasn't passed any evaluations. An "insured" contractor's work is backed by an insurance provider, protecting you from any damage they may cause. Additionally, a "bonded" contractor has a bond issued by an insurer or licensing municipality, which ensures they will complete the work to a reasonable standard. If they fail to meet your specifications, you can seek reimbursement from the bond issuer.
When checking online reviews, it is crucial to be aware of warning signs that indicate potential issues with a contractor. Be cautious of contractors who use high-pressure sales tactics or offer unsolicited services at a discount, claiming to have leftover supplies from another job. It is also important to get multiple written, itemized estimates and have your insurance company evaluate any damage before arranging repairs to ensure coverage under your policy.
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Frequently asked questions
Ask the contractor for a certificate of insurance and then call the insurer to confirm that the policy is up to date and covers your project.
You can verify licenses with your local contractors' association or building department. Many states also have contractor insurance lookups you can access online.
A roofing company should carry General Liability Insurance and Workmen’s Compensation Insurance.
A bonded contractor has a bond issued by an insurer or licensing municipality. If the contractor fails to complete the job, you can petition the bond issuer for reimbursement.
Go to MyFloridaLicense.com, a database managed by the Florida Department of Business and Professional Regulation.
