Most homeowners do not know the requirement for contractors to maintain both Workers Compensation and General Liability Insurance. It is mandated by Contractors State License Law that all contractors who have employees must carry Workers Compensation Insurance to cover the homeowner and employee from financial ruin.  General Liability Insurance is not required by contractor’s law but is required by business and insurance codes. General Liability Insurance covers all your possessions and property in the event the contractor damages any personal items during construction.  The reason General Liability Insurance is required, is so you do not have to file a claim on your homeowners insurance to cover the damage or loss from the contractor’s neglect.  It wouldprobably surprise you to learn some Patio Cover Contractor’s do not carry either of these insurances policies to keep operating costs down.

Most contractors are honest and law abiding companies, it’s the 10% that do not follow the rules that make it harder on honest companies to stay in business. 

California Contractors are required, by California law to have Workers Compensation Insurance if they employ any person for any length of time, even if that person is only delivering materials to your home.  Once a person has entered your property and becomes injured, you assume all liability for any medical claims that may arise if the contractor does not maintain Workers Compensation Insurance.  All Workers Compensation Insurance information is readily available on the CSLB website at http://www.cslb.ca.gov

That is why it is so important for you to protect yourself from any financial harm by making sure the contractor is properly licensed and insured under the current laws for the State of California.  If a contractor informs you that he does not need workers compensation insurance because they use family members or friends.  That would be afalse statement and should be reported to the Contractors State License Board.  The only defense from unlicensed and uninsured contractors is to report their unlawful conduct to the Contractors State License Board.  You can remain anonymous and still make a difference or even prevent another family from suffering any undue hardship by reporting any illegal activity.

Sole Owners - Contractors and Dealers of patio rooms and patio covers in some cases list their ownership status with the Contractors State License Board as "Sole Owner".  They also have the option to claim if they have any employees.  If they claim no employees, they do not need to carry Workers Compensation Insurance.  However, no person can work on your project except for the registered owner of the company.  If any person other than the "Sole Owner" enters your property to work or deliver materials when the dealer has no Workers Compensation Insurance, you could be held financialy responsible for any medical claims.  Always protect yourself and make sure all contractors have Workers Compensation Insurance and General Liability Insuarnce!

Sub - Contractors - If your contractor or dealer claims to use Sub-contractors you have a right to know the name and license number of the sub-contractor that will perform the work. You should verify by asking for identification of the person who is representing himself as the sub-contractor.  You can varify whether the sub-contractor has workers Compensation Insurance by visiting the Contractors State License Board website or ask proof of the policy.  Make sure you verify the policy exists with the company that issues the policy to the contractor. All insurance companies are required to inform the C.S.L.B. (Contractors State License Board) if a contractor has secured Workers Compensation Insurance.