New Year, New Look: Selecting a General Contractor

By Susan Martin

It’s a new year, so it might be time for an upgrade. There might be some upgrades you want to make on your home or around your property to spruce it up. Or you might be looking into selling your home and need some repairs or quick refreshing.

No matter what kind of work you need done, it’s important to use a contractor who is trusted, knowledgeable and meticulous in their specific trade. But more importantly, you need a contractor who is licensed and insured.

But where do you start?

As a homeowner, what do you need to look for in a contractor? Below are a few important traits to look for when selecting a contractor. 

What kind of insurance should I expect my general contractor have?

It is highly recommended that your general contractor carry a limited liability business insurance policy. A limited liability policy is a type of insurance that protects a business from claims that happen as a result of normal business operations. It provides coverage to the business for bodily injuries, medical payments, advertising injuries and more. 

We asked area contractors what their thoughts were on limited liability policies and their importance. TJ Johnson of Johnson’s All-Scapes, LLC, said, “I carry a three million dollar insurance policy to make sure that I am covered in the worst situations.”

Another important type of insurance to ensure your contractor holds is a worker’s compensation policy on their employees. This type of policy covers the employee in case any accidents happen on your property during a job.

What other kind of licensing is important?

In most states, a business license for each county, town and state worked in are required. In Maryland, only a state business license is required, unless the contractor is working in specific cities such as Ocean City. Delaware, on the other hand, requires separate licensing for each town as the licensing varies per town.

If home improvements are being done on a home in the state of Maryland, a Maryland home improvement license is required. This license is more focused on the laws that protect the contractor and the homeowner, and has less to do about the building process or codes.

If a contractor does not have an MHIC license, then they have the ability to sue the homeowner for any accidents that happen on their property. In addition, if the homeowner is made aware that a contractor does not hold a MHIC license, then they are not obligated to pay the contractor and the contractor has no backing in a court of law.

What specifically should a homeowner look for in a contractor?

“When hiring a contractor, a homeowner should ask for a copy of the contractor’s business license and MHIC license along with proof of insurance,” said TJ Johnson. “It’s also important to ask for proof of a certificate of insurance for the job, with the homeowner being listed as the covered party.”

When searching for a contractor...

Do your research. When proper licensing and insurance are missing, and something happens, the job can go awry really fast. Be sure you are asking the appropriate questions and that your contractor is fully aware of the job you need done. Do your due diligence, ask the right questions and select a contractor that you can trust to do the specific job you need, and one with the appropriate business licensing.