What insurance should a contractor carry?

Two policies are essential for any contractor working on a senior home: (1) General liability insurance (typically $1-$2 million per occurrence) covering property damage and injury to others caused by the contractor's work, and (2) Workers compensation insurance covering the contractor's own employees if injured on your property. A third item, a surety bond, is required for licensure in many states and provides limited recourse if the contractor fails to complete or violates the contract. Verify all three directly with the carrier or state board, not just by accepting a certificate.

What is the difference between bonding and insurance?

Insurance protects against accidents — general liability covers property damage and injury, workers comp covers injured workers. A surety bond is not insurance; it is a financial guarantee that the contractor will complete the work and follow the law. If the contractor fails, you (or the state) can file a claim against the bond. Bonds are usually small ($10,000-$25,000) relative to project value and licensure-driven, so a bond is a minimum-competence signal, not full financial protection. You need both: insurance for accidents, bond for performance.

How do I verify a contractor is actually insured?

Ask for a Certificate of Insurance (COI) emailed directly to you. Then call the insurance carrier or agent listed on the COI — using a number you find independently, not one the contractor provides — and confirm the policy is active, the dates are current, and the coverage amounts match. Better: ask the contractor to have their agent add you as a "certificate holder," which means the carrier notifies you if the policy lapses. A contractor who resists direct verification is a red flag.

Why does workers comp matter for me as a homeowner?

If a contractor's worker is injured on your property and the contractor has no workers compensation insurance, the injured worker can sue you, the homeowner, for medical costs and lost wages. Your homeowner's policy may not fully cover a construction-related injury. Workers comp on the contractor's side moves that liability off you. For any project involving workers on ladders, roofs, or heavy equipment in a senior home, verifying workers comp is not optional.

What happens if I hire an uninsured contractor and something goes wrong?

You absorb the loss. If an uninsured contractor floods your bathroom, damages your neighbor's property, or injures a worker, there is no insurance policy to claim against — your recourse is suing the contractor personally, which is slow and often fruitless if they have no assets. Homeowner's insurance may deny construction-related claims involving unlicensed or uninsured contractors. The modest premium a licensed, insured contractor charges is the price of transferring this risk off yourself.

Does the certificate of insurance expire?

Yes. A COI shows policy dates, and policies typically renew annually. A contractor may hand you a COI that was valid when they joined a platform two years ago but has since lapsed. Always check the expiration date on the COI and confirm with the carrier that the policy is active TODAY. Request a fresh COI dated within the last 30 days for any project over $5,000, and ask to be added as a certificate holder so you are notified of any lapse during your project.

How much does it cost to verify, and is it worth it?

Verification is free — a 10-minute phone call to the carrier per contractor. The cost of skipping it can be tens of thousands of dollars if an uninsured contractor causes damage or a worker is injured. For senior homeowners specifically, the asymmetry is stark: ten minutes of verification versus potential six-figure liability. Always verify for any project over $500, and never waive verification because a contractor "comes recommended" — recommendations do not pay claims.

Contractor Insurance & Bonding: What to Verify

The short version: Before hiring, verify three things directly with the carrier or state board — not by trusting a piece of paper. (1) General liability insurance ($1-$2M) covers property damage and injury caused by the work. (2) Workers compensation covers the contractor’s injured workers so they cannot sue you. (3) A surety bond gives limited recourse if the contractor abandons the job. Call the carrier using a number you find yourself, confirm everything is active today, and ask to be added as a certificate holder. Ten free minutes of verification versus potential six-figure liability — always do it for any project over $500.

Why this is the clause that protects your savings

A licensed contractor without current insurance is almost as risky as an unlicensed one. The license says they passed a competence exam; the insurance is what actually pays when something goes wrong. For a senior homeowner, the gap between “insured” and “uninsured” is the gap between a contractor’s policy covering a flooded bathroom and you covering it out of your retirement savings.

This article assumes you have already verified the contractor’s state license and reviewed the contract clauses. Insurance and bonding verification is the parallel step — done before you sign, alongside the three-quote comparison.

The three things to verify

1. General liability insurance

Covers property damage and bodily injury to others caused by the contractor’s work. If the contractor’s crew cracks your neighbor’s driveway, drops a tool through your floor, or causes a leak that ruins the ceiling below, general liability pays.

Minimum: $1 million per occurrence
Common: $1M per occurrence / $2M aggregate
For larger senior projects (bathroom remodel, walk-in tub, multi-room): $1M minimum, $2M preferred

2. Workers compensation insurance

Covers the contractor’s own employees if injured on your property. This is the one homeowners overlook, and it carries the most direct personal risk.

If a worker falls off a ladder in your home and the contractor has no workers comp, the worker can sue you, the homeowner, for medical bills and lost wages.³ Your homeowner’s policy may not cover a construction-related injury. Workers comp on the contractor’s side moves that liability entirely off you.

Sole-proprietor contractors with no employees may be exempt in some states. If so, get the exemption in writing and confirm no employees or subcontractors will be on site.

3. Surety bond

A bond is not insurance — it is a financial guarantee that the contractor will complete the work and follow the law.⁴ If the contractor abandons the job or violates the contract, you (or the state) can file a claim against the bond.

Required for licensure in many states
Usually $10,000-$25,000 — small relative to large project value
A minimum-competence signal, not full financial protection

You need all three: GL for accidents, workers comp for injured workers, bond for performance.

How to actually verify (not just trust the paper)

The Certificate of Insurance (COI) a contractor hands you is a starting point, not proof. COIs can be outdated, forged, or for a lapsed policy. The verification steps:

Step 1: Get the COI emailed directly

Request a current COI showing GL and workers comp, with carrier names, policy numbers, coverage amounts, and effective/expiration dates. A contractor who can’t produce one in 48 hours is disqualified.

Step 2: Check the expiration dates

A COI from when the contractor joined a platform two years ago may have lapsed. For any project over $5,000, require a COI dated within the last 30 days.

Step 3: Call the carrier directly

This is the step most homeowners skip and the one that matters most. Find the carrier’s phone number independently (search the carrier name — do not use a number the contractor gives you), call, and confirm:

Policy is active today
Dates are current
Coverage amounts match the COI

Step 4: Ask to be added as a certificate holder

When you are listed as a certificate holder, the carrier notifies you if the policy lapses or is canceled during your project. This automates the “re-verify before start” step and is free to request.

Step 5: Match names across documents

The business name on the COI, the bond, the state license, and the contract must all be the same legal entity. A mismatch means the contractor may be working under borrowed or stolen credentials — and your “coverage” would be worthless at claim time.

What an uninsured contractor actually costs you

The asymmetry is the whole argument. Verification is free and takes ten minutes per contractor. The downside of skipping it:

Scenario	With insured contractor	With uninsured contractor
Worker falls off ladder	Workers comp pays	Worker may sue you
Crew floods bathroom	GL pays repair	You pay repair
Damage to neighbor’s property	GL pays	You pay, neighbor may sue you
Contractor abandons job	Bond claim available	Sue contractor personally (often fruitless)
Faulty work causes later injury	GL + labor warranty	You absorb it

Homeowner’s insurance frequently denies construction-related claims involving uninsured or unlicensed contractors. The modest premium an insured contractor charges is the price of transferring all of this risk off yourself — for a senior on a fixed income, that risk transfer is the entire point.

Senior-specific notes

Door-to-door and storm-chaser contractors almost never carry proper insurance — it does not pencil out for transient operators. The absence of a verifiable COI is one more reason the door-to-door pitch is a disqualifier.
Platform “verified” badges (HomeAdvisor, Angi) check insurance at onboarding only, not currently. Verify directly regardless of platform — see our HomeAdvisor and Angi reviews for how badge verification actually works.
Caregivers verifying remotely can do all of this by phone and email on behalf of a senior parent — the COI is emailed, the carrier call is a phone call, the license/bond lookup is online. No in-person presence required.

The 30-second summary:

Verify three things: general liability ($1-2M), workers comp, surety bond.
Workers comp is the one with direct personal risk — an uninsured worker injury can land on you.
Don’t trust the COI paper — call the carrier using a number you find yourself.
Require a COI dated within 30 days; ask to be added as certificate holder.
Match the business name across COI, bond, license, and contract.
Verification is free and takes 10 minutes; skipping it risks six figures.
Re-verify the week before the project starts — policies lapse.

How to Find a Senior-Friendly Contractor — master pillar
Reading the Contract: 7 Clauses to Watch — verify alongside the contract
State Contractor License Lookup — license + bond verification
Three-Quote Method: Fair Pricing for Seniors — verify during quote comparison
Contractor Red Flags That Cost Seniors $50,000 — uninsured = a red flag
Contractor Change Orders: Avoid Surprise $5K Bills
Find a Licensed Electrician for Senior Homes

Citations

Hiring a Contractor: Tips for Avoiding Home Improvement Fraud. U.S. Federal Trade Commission, 2024. consumer.ftc.gov.

Home Improvement Scams Targeting Older Adults. AARP Fraud Watch Network, June 2024. aarp.org/fraud-watch.

Workers Compensation Requirements by State. U.S. Department of Labor, 2024. dol.gov/workcomp.

Surety Bonds Explained. U.S. Small Business Administration, retrieved May 23, 2026. sba.gov.

State Contractor Licensing Board Directory. National Association of State Contractors Licensing Agencies, retrieved May 23, 2026. nascla.org.