You’ve wanted to renovate your cramped, outdated kitchen for ages. Or perhaps you are deciding between staying in your home after major damages or selling and walking away from some potential pricey repairs. Like many, asking around among friends and co-workers may initially help find and hire a contractor, but making sure your contractor is insured in Milwaukee is of vital importance.
Things can get ugly—and shockingly expensive—if your contractor isn’t properly insured. Without the right coverage in place, you could be left holding the bag for incomplete work, on-the-job injuries, or accidental property damage. That means delays, disputes, out-of-pocket repairs, and far more stress than any homeowner deserves. The good news? You can protect yourself by ensuring your contractor is reputable, properly licensed, and fully insured before work begins.
Difference Between Bonding and Insurance
You’ve probably seen contractors advertise themselves as “licensed, bonded, and insured,” but what does that actually mean?
- Bonding (specifically a surety bond) protects the homeowner if the contractor fails to complete the job or delivers poor-quality work. If the contractor vanishes mid-project or cuts corners, the bond ensures you’re financially covered without needing to tap into your homeowner’s insurance.
- Insurance protects both your home and your legal liability. Contractor insurance typically includes:
- General liability insurance – Covers accidental damage to your property or injuries that may occur during the renovation.
- Workers’ compensation – Covers medical costs and lost wages if a worker is injured on your property. Without this, you could be held responsible.
- Property damage insurance – Helps cover structural or cosmetic damages caused during the construction process.
Both bonding and insurance are essential for any contractor working in Milwaukee.
What Kind/How Much Insurance?
Making sure your contractor is insured in Milwaukee isn’t just about checking a box—it’s about ensuring they carry the right types of coverage, in sufficient amounts.
For example, if your home is worth $1.5 million and your contractor’s policy only covers $500,000 in damages, that’s a major red flag. Here’s what to look for:
- General liability insurance – Should offer enough coverage to protect your home’s full value.
- Workers’ comp insurance – Especially important if your contractor has a crew. Not all states require it for small operations, so don’t assume it’s in place—ask!
- Proof of property damage coverage – This protects you against accidental damage that might occur during demolition, construction, or renovation.
Don’t just take their word for it. Ask for current certificates of insurance and make sure the coverage dates are valid during your project timeline.
Steps You Need to Take
Before hiring a contractor for a remodel, addition, or major repair project, take the following steps to ensure they’re properly insured:
- Verify business credentials – Look them up with the Better Business Bureau (BBB) and check for complaints or unresolved claims.
- Request multiple references – Speak to recent clients and ask about work quality, professionalism, and whether there were any insurance-related issues.
- Schedule a formal consultation – Discuss the project scope, insurance requirements, and payment schedule in person.
- Get everything in writing – That includes a detailed contract covering work milestones, materials, payment terms, insurance proof, completion dates, and contingency plans.
- Request up-to-date proof of bonding and insurance – Don’t sign a contract until you’ve seen valid documentation.
How Does Your Contractor Deal With Subcontractors?
Many general contractors in Milwaukee rely on subcontractors for parts of the job—plumbing, framing, electrical, or roofing, for instance. But are those subcontractors insured?
Sometimes subcontractors are hired off the books and paid in cash, which means they may not be covered under the general contractor’s insurance policy. If a subcontractor causes damage or gets injured, you could be financially exposed. Before you hire anyone, ask the general contractor:
- Do you use subcontractors?
- Are subcontractors covered under your insurance?
- Can I see proof of subcontractor coverage?
It’s a critical conversation that can help avoid massive liabilities later.
If you’re still feeling overwhelmed and want to walk through all of your options, we would be glad to assist you! Feel free to contact us by phone at (608) 523-9807 or fill out our contact form to get in touch.
Protect Yourself and Your Property
Knowing how to make sure your contractor is insured in Milwaukee is essential to a smooth and stress-free home improvement experience. Whether you’re remodeling your kitchen, adding a second story, or finishing a basement, don’t skip this important step. If you’re unsure where to begin, talk to local real estate professionals or trusted investors in Milwaukee who have vetted contractors they work with regularly.
Hiring a fully insured and bonded contractor isn’t just smart—it’s the best way to protect your home, your finances, and your peace of mind.