When a contractor says they’re insured, it means they are covered for liability purposes.
In other words, if they damage your home by fire, breaking a water pipe, or even hitting underground lines – they are insured for the damage they caused. If you or someone else is injured due to negligence by the contractor, the contractor’s liability coverage will cover the cost. There are usually state-mandated minimums of insurance required. Depending on the state, insurance limits can be minimal and might not cover the cost of the damage.
However, just because a contractor has does not mean he is a good fit for your project. You still need to shop around.
Liability insurance does not cover a bad job. Often, the only recourse the owner has is to take the contractor to court. Going to court can be costly and does not always get you the results you are looking for. It is always best to choose a contractor with years of experience successfully satisfying their clients. Ask to see their work, speak to their clients, and look to other professionals in the area for information about their reputation. Check with the Better Business Bureau and the Chamber of Commerce.
You should feel absolutely comfortable in the competence of the contractor you choose. Finding one with years of experience successfully satisfying clients is always a good start.