Who Pay's Contractor's Ins.?
Just recieved an estimate from a licensed contractor for painting, plastering, refinishing floors and replacing electrical outlet’s in a co-op. The last item on the estimate was an $800 charge for insurance. Shouldn’t he contactor have insurance and be able to submit a certificate of ins. to the bldg. without charging me? Thanks!
Just recieved an estimate from a licensed contractor for painting, plastering, refinishing floors and replacing electrical outlet’s in a co-op. The last item on the estimate was an $800 charge for insurance.
Shouldn’t he contactor have insurance and be able to submit a certificate of ins. to the bldg. without charging me?
Thanks!
It’s not uncommon for the contractor to pass on company costs, such as insurance to the client. It is however very odd that he would itemize it as he did. I agree with the previous gentleman, If he has taken out insurance specifically for your job, that would also raise an eyebrow. Do yourself a favor check with the BBB for any past problems or complaints agaisnt the contractor. You may also, though time consuming, do a background check on him. I believe the cost is around $40.00 or so. But better to spend $40.00 now than have someone come into your home and do improper work. Check his contractors license and make sure he is up to date. The price of the insurance, well that will depend on location, maximum liability cost, and your property type if he has purchased insurance specifically for your job.
It’s not uncommon for the contractor to pass on company costs, such as insurance to the client. It is however very odd that he would itemize it as he did. I agree with the previous gentleman, If he has taken out insurance specifically for your job, that would also raise an eyebrow. Do yourself a favor check with the BBB for any past problems or complaints agaisnt the contractor. You may also, though time consuming, do a background check on him. I believe the cost is around $40.00 or so. But better to spend $40.00 now than have someone come into your home and do improper work. Check his contractors license and make sure he is up to date. The price of the insurance, well that will depend on location, maximum liability cost, and your property type if he has purchased insurance specifically for your job.
business liability insurance is generally priced based on annual sales, or annual payroll. It is not priced by a specific project, regardless of what’s charged for that project. However, this contractor maybe went out and got insurance just for your job because he had none; otherwise, his insurance costs should be buried in his cost-of-doing-business overhead, and that should be reflected in his price to you.
I always get certs for my clients, without regard to the size of the project (up to 2 mil, anyway) and do not pay extra for “also insured” certificate holders.
I would question why this contractor is line -iteming insurances costs.
and $800 seems way high for the work you described as well.
This is very typical.
The cost for the insurance is based on a percentage of the overall cost of the job.
How much is the job?
no, that seems crazy for the work you described.
In some way or another a contractors insurance costs will be embedded in your bill, weather its a line item or not its a factor that you have to pay for. And a contractor wouldnt want to carry extra insurance when he’s not working so I not surprised that it gets picked up like this per job and this enables you to be referenced on the insurance. On the other hand $800 seems like a bit high for that kind of work (although I dont have too much experience with NYC coop insurance reno rates)
SteveOMS