Hiring a Contractor? Read This Before You Do

Middle Tennessee has seen a housing boom in the last three years, both in the realms of new home construction and remodeling.  According to a report from Nashville NBC-affiliate WSMV, over 100 new people move to the Nashville area daily, and over one million more are projected to arrive in the next 20 years.  Those newcomers to Music City are buying new homes and renovating existing ones. This influx of new residents has presented a golden opportunity for another growing segment of The Volunteer State—general contractors.

For those who want to turn their weekend side painting gig or deck-sanding-for-the-family into a full-time business, one of the most important things to consider is obtaining commercial general liability insurance.  The State requires all general contractors and home construction and improvement professionals to carry certain coverages in order to hold a license in Tennessee, and to not do so can result in fines and other penalties.  (This applies if the total cost of the project exceeds $25,000.)

When shopping for coverage, the two most important components to consider are bodily injury and property damage:

1. Bodily injury-this covers any customer or bystander who is injured as a result of the contractor’s work and usually covers that person’s medical expenses and time missed from work, in addition to the contractor’s legal expenses.
2. Property damage-should any workmen or equipment cause damage to either the customer’s or a third party’s property, this policy would pay for the repair or replacement of the property, as well as cover any legal fees associated with it.

For homeowners looking to hire a general contractor to repair or upgrade their home, it is important to choose one who is both licensed and adequately insured.  If one of the contractor’s employees or a third party is injured, or anyone’s property other than the homeowner’s is damaged during the project, and the contractor does not have proper coverage, the homeowner can be held liable.

Starting a business as a general contractor has many moving parts.  Let the professionals at Johnston & Associates pool their experience to find the coverage and insurer that work for you at a price that works for you.  Scott, a small business owner and Middle Tennessee resident himself, and his team have the collective expertise to put your business in Brentwood, Fairview, Franklin, Nashville, Nolensville, and Spring Hill on a solid foundation.  Contact them today for confidence you can build upon.