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Contractor
vs. Do-It-Yourself (DIY)
In our
newsletters we frequently suggest hiring a professional
contractor to handle repairs and/or
improvements. Why? Simply stated, risk management
and claim prevention. These two items alone are reason
enough to hire a licensed professional to handle all building
maintenance needs.
Hypothetical
situation: The toilet needs to be
replaced.
Scenario #1 -
Injury
Contractor – The
hired professional injures their back while replacing the
toilet. The claim should be made against the hired
professional’s worker compensation policy.
Volunteer – The
church volunteer injures their back while replacing the
toilet. A claim is made against the church’s liability
policy.
Scenario #2 –
Faulty Work
Contractor – The
hired professional improperly installs the toilet, which then
leaks and causes water damage. The claim should be filed
under the contractor’s liability
insurance.
Volunteer – The
church volunteer improperly installs the toilet, which then
leaks and causes water damage. The claim would be filed
under the church’s property insurance.
Summary:
These are just two
of many scenarios that highlight the difference between hiring
a professional and DIY. A hired professional is more
likely to absorb claim-related and workmanship issues rather
than the insured. On the other hand, a volunteer DIY
project may result in an expensive claim which may adversely
affect the insured’s loss history and result in greater
underwriting scrutiny.
Tips for hiring a
contractor:
- Obtain multiple
bids.
- Obtain multiple
referrals.
- Check with the
Better Business Bureau and Attorney General’s
Office.
- Obtain proof of
liability, workers compensation coverage and appropriate
licenses.
- Obtain a concise
and written contract signed by both parties.
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