Hiring an uninsured siding contractor can leave you liable for injuries, property damage, and incomplete work with no recourse. Before signing anything, you need to verify that your contractor carries the right coverage. Here's exactly how to do it.
Why Insurance Matters for Siding Work
Siding installation and replacement involve working at heights, using power tools, and potentially damaging your home's exterior during removal. If a worker falls and gets injured, or if debris damages your roof or neighbor's property, an uninsured contractor leaves you holding the bill—sometimes for tens of thousands of dollars.
Beyond liability, insurance protects you if the contractor vanishes mid-project or goes bankrupt before finishing. Many states also require contractors to carry workers' compensation if they have employees, making it a legal requirement, not just a good idea.
What Insurance Types to Look For
Legitimate siding contractors carry two main types of coverage:
General Liability Insurance covers property damage (like cracking a window or denting a gutter during work) and third-party injuries. This is the baseline. A standard policy typically covers $1–2 million in damages, which is the typical minimum you should see.
Workers' Compensation Insurance is mandatory in most states if the contractor has employees. It covers medical costs and lost wages if a worker gets injured on your property. If a contractor says they work solo with no employees, they may not need this—but verify that claim independently.
Some siding contractors also carry Tool & Equipment Coverage or Garage Keepers Liability, but these are secondary. The first two types are non-negotiable.
How to Verify Insurance Directly
Ask for the Certificate of Insurance. Request a copy before work begins. This is a one-page document that shows:
- The contractor's name and policy numbers
- The insurance company's name and phone number
- Coverage limits (look for at least $1 million in general liability)
- The policy's expiration date
- Your address listed as "additional insured" (this is important—it means you're protected under their policy)
Call the insurance company yourself. Don't rely solely on a photocopy. Use the phone number on the certificate to contact the insurer directly and confirm:
- The policy is active and current
- The coverage limits match what the contractor claimed
- Your project is listed or can be listed as an additional insured
This takes 5 minutes and eliminates the risk of a forged certificate.
Check your state's contractor licensing board. Many states (California, Florida, Texas) require licensed contractors to maintain proof of insurance on file. Search your state's license lookup database online—if the contractor is licensed, you can often cross-reference their insurance status there.
Red Flags to Watch
- No certificate readily available. A professional contractor keeps this document accessible and provides it without hesitation or excuses.
- Expired policy dates. If the certificate expired last month, the contractor is currently uninsured.
- Low coverage limits. Anything below $500,000 in general liability is concerning for siding work. You want cushion.
- Vague answers about workers' comp. If they say "oh, my workers are independent contractors," push back. Many states have cracked down on misclassification, and you could face liability if something goes wrong.
- Insurance company you've never heard of. Stick with A.M. Best-rated insurers. Check a company's financial stability before accepting their certificate as valid.
- Your address not listed as additional insured. This means if something goes wrong, their insurance might not cover you.
Typical Coverage Costs (Context)
A siding contractor with a crew typically pays $1,500–$3,500 annually for general liability and workers' comp combined, depending on state and payroll size. If a contractor claims they can't afford insurance, that's a warning sign about their operation's legitimacy.
Get Quotes with Verification Built In
When comparing siding contractors, ask for insurance verification upfront as part of your quote process. Mercoly allows you to compare and find trusted siding contractors in one place, with verified credentials—making it easier to narrow down candidates who've already proven they're insured and licensed.
Request at least three quotes and verify each contractor's insurance independently. It's the simplest way to protect yourself.
Frequently Asked Questions
Q: What if a contractor says they're too small to need insurance? That's not true. Even solo operators carrying their own tools can cause property damage or hire day laborers, creating liability exposure. Walk away from this answer.
Q: Can I assume insurance is included if the contractor is licensed? No. Licensing and insurance are separate. A license means they passed a test; insurance means they have active coverage. Always verify both independently.
Q: What should I do if a contractor gets injured on my property and claims I should pay? Immediately notify your homeowner's insurance and provide them with the contractor's certificate of insurance. That's what their workers' comp is for—not your responsibility.
Start your siding project right: verify insurance before the first nail goes in.