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Old 03-06-2015, 07:47 AM
 
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I'm in the process of taking estimates for a new concrete patio. Job entails removing existing patio and replacing with a new slab. I'm finding a wide array of pricing and some contractors have liability insurance up to $1M, and others don't carry any insurance coverage. What I find interesting is that a couple of the uninsured contractors in Austin have been in business many years, with many well-reviewed jobs under their belts. Even listed in Angie's List. Is liability insurance crucial for this kind of work? Why do so many people use uninsured contractors? Should I only consider using companies that have liability insurance? Thanks
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Old 03-06-2015, 09:23 AM
 
Location: Austin, TX
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I wonder if it's the same thing in a different form - sometimes you'll see 'licensed and bonded' where they've put up a bond but maybe that's not technically liability insurance? I would be surprised to learn you can go tear up somebody's patio without any type of coverage at all.
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Old 03-06-2015, 09:55 AM
 
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as far as i know, you don't need to be licensed to pour a patio, and being bonded is not the same as being insured for liability. It does seem unlikely that a contractor of any kind would be without liability insurance, but it seems some do, and get clients too. i'm wondering if this is normal (or advised)?
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Old 03-06-2015, 11:23 AM
 
Location: Austin, TX
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My presumption is that if they don't need a license (and therefore can get by without liability insurance) it's because the state supposes they aren't likely to get into a pickle where they need it.

Personally, I wouldn't want someone tearing up my patio unless they had insurance.
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Old 03-06-2015, 11:41 AM
 
Location: Austin, TX
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It is all in what you want to pay for, I guess. If they screw up a neighbors yard (i.e. drive a mix truck through their fence), you will be on the hook, potentially. OTOH, if it is a small job (small portable mixer), you might decide you don't want to pay the premium for the insurance...
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Old 03-06-2015, 12:12 PM
 
Location: Austin, TX
16,787 posts, read 49,095,534 times
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Quote:
Originally Posted by Aquitaine View Post
I wonder if it's the same thing in a different form - sometimes you'll see 'licensed and bonded' where they've put up a bond but maybe that's not technically liability insurance? I would be surprised to learn you can go tear up somebody's patio without any type of coverage at all.
Yes you can tear up sombody's patio without any type of coverage at all.

"Licensed and bonded" has nothing to do with liability insurance.

Licensed means they have a state license if one is required for that type of work. i.e. electrical (very few trades require a license, especially at residential scale).

Bonded can be either a performance bond or payment bond. It is very unusual to require either for small residential construction projects.

Performance bond = a third party is guaranteeing that they will step in and complete the work if the contractor fails to do so.

Payment bond = a third party is guaranteeing that they will step in and pay all of the subcontractors and suppliers if the contractor fails to do so. Otherwise those subcontractors and supplies could file liens against your property if they do not get paid.

Liability insurance protects you the home owner if the contractor damages your property or if someone gets injured while working there.

Many small contractors do not carry bonds or liability insurance as it adds cost to the work and may make their prices less competitive. I think you need to ask yourself how risky is the work the contractor is doing and do you need additional insurance to protect you. Your homeowners insurance probably already provides some protection if someone gets hurt while working on your property.

I would not be to worried about requiring insurance for concrete work on the ground, but probably would require it for a reroofing job which has higher risks.
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Old 03-06-2015, 05:08 PM
 
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thanks, everyone for your valuable insight. I chose to go with a contractor that had the most competitive price, has many years of experience doing concrete work, has many great client reviews, and does have liability insurance. win-win!
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Old 03-06-2015, 07:00 PM
 
Location: Austin, TX
16,787 posts, read 49,095,534 times
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Quote:
Originally Posted by Trainwreck20 View Post
It is all in what you want to pay for, I guess. If they screw up a neighbors yard (i.e. drive a mix truck through their fence), you will be on the hook, potentially. OTOH, if it is a small job (small portable mixer), you might decide you don't want to pay the premium for the insurance...
I can't help but question this, if a contractor screws up a neighbors yard, I am not necessarily liable for that as I did not hire the contractor to do that. That is on him.
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Old 03-06-2015, 07:55 PM
 
Location: Austin, TX
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Quote:
That is on him.
Yes, but if you have insurance (and the contractor doesn't), I suspect they will come after you for being the end responsibility.
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Old 03-07-2015, 07:24 AM
 
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Yes, they would go after you, and it would be up to you to go after the contractor to reimburse you. it would be a nasty, long-drawn out, expensive ordeal. THAT is why I was so concerned about the liability insurance. I am now convinced that if you hire anyone to do anything at your property, you should make sure they are insured. It's surprising what you can be held liable for if anything goes wrong.
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