If you hire an uninsured outdoor lighting contractor and someone is injured or property is damaged during installation, it could create financial and legal complications for you. This is best avoided, which is why it is a good idea for homeowners to verify their contractor’s general liability and workers’ compensation coverage before work starts.
Outdoor lighting work can be dangerous. Workers use ladders and work on electrical systems. Some installations also involve working at heights. Proper insurance coverage matters because accidents can happen even on carefully planned projects.
General liability covers certain third-party injury and property damage claims. Workers’ compensation addresses eligible work-related injuries to employees. They're separate policies with different terms, exclusions, and limits. Different laws apply to each type of coverage. Neither can cover you in every possible incident, but they're still good for reducing your risk.
If an uninsured crew works on your property, it’s possible that someone could be injured. That doesn’t necessarily mean you will be held responsible, but it is a potential liability. What happens next depends on the specific circumstances, the worker’s employment status, state laws, and available insurance policies. That is a specific kind of risk that you don't need to deal with. It’s far easier to verify a contractor’s coverage before work starts. You can’t necessarily assume your standard homeowner’s policy will cover you here.
The simplest precaution is to request a current certificate of insurance. Check the dates and types of coverage, and ask if subcontractors will be used. If you’re unclear on anything, verify the information with the contractor’s insurance agent or insurer.
Outdoor Lighting Perspectives of Southwest Michigan and Northern Indiana provides custom outdoor lighting design, installation, and maintenance. Before hiring any contractor, including us, ask for documentation of the insurance applicable to your project. To discuss your lighting needs with Outdoor Lighting Perspectives, call (269) 225-6031.