Ensure Safety and Protection: Always Request Proof of Liability and Worker’s Comp Insurance
When hiring a company to remove and trim trees around your property, it is essential to ensure your safety and the safety of the workers. One vital step is to request proof of liability and worker’s comp insurance from the contractor. This article will guide you through the importance of obtaining these documents and the proper ways to approach the process.
Why is Proof of Insurance Important?
Trust is a cornerstone of any business relationship, especially in industries like tree service that involve physical labor and potential risks. Many companies may claim to have insurance, but in reality, they might not. This can lead to severe issues if an accident occurs. Therefore, it is not reasonable to demand a copy of their insurance policy; instead, you should ask for a verified insurance certificate. These documents are routinely provided by insurance companies and are industry-approved.
How to Request Proof of Insurance?
When you want to ensure that a tree service company has the necessary insurance coverage, your approach should be straightforward and professional. Request that the company send you an insurance certificate. This is a free service offered by all insurance companies. If they refuse to provide it, it raises a red flag about their insurance status.
It is also wise to obtain proof of insurance from any individual or company working on your property. Accidents can happen, and you want to protect yourself from potential legal challenges if someone gets hurt.
Types of Insurance Required
In the United States, reputable tree services should be able to provide an ACORD certificate, which includes business liability and worker’s comp (compensation) insurance. ACORD stands for the “Association of Counseling Ordering of Risks Distribution,” and their certificates are recognized in the industry.
A reputable company should have these documents ready to present to potential customers. A photocopy or even a texted PDF from a smartphone should suffice. The cover page of the ACORD certificate is generally enough to verify the company's insurance status.
How to Verify Insurance Legitimacy
It is wise to verify that the insurance is active and not just a copy of a binder. Sometimes, unscrupulous insurance brokers might take premiums from businesses for liability and worker’s comp insurance but never actually purchase the insurance, keeping the money for themselves. Such cases can lead to severe legal and financial consequences.
To avoid such issues, always ask for a declaration page from the insurer and keep a copy, noting the insured term. If someone provides a binder instead, it’s a sign that they might not have the necessary insurance.
Conclusion
Requesting proof of liability and worker’s comp insurance is not just reasonable but highly advisable. It protects both you and the workers involved in any tree removal or trimming work. For smaller tree businesses, insurance can be expensive, but the risks are significant. Therefore, it is crucial to verify that they have the proper insurance in place to protect everyone involved.
Remember, if a company avoids providing insurance documentation, it might be a sign that they do not have it. In such cases, it is wise to proceed with caution or find a reputable company that takes insurance seriously.