⚠️ Consumer Alert: Risk Level High
Decoding the COI
(The "Action Over" Trap)
Executive Summary
- THE RISK:"Fully Insured" contractors often have valid policies that specifically *exclude* the work they are doing (e.g. Roofing Exclusion).
- THE CAUSE:Buying cheap "Ghost Policies" to satisfy state minimums while saving $10k/year.
- THE FIX:Requesting the ACORD 25 form directly from the broker.
The "Action Over" Exclusion
This is the deadliest clause. In many states, if an injured worker sues you (the homeowner), the contractor's insurance *should* defend you.
An "Action Over" exclusion says: "We do not cover lawsuits from employees against third parties (you)."Translation: If a worker falls, you lose your house.
The "Photoshop" Reality
Never accept a photo of an insurance card. It proves nothing. It could be expired or photoshopped.
🛡️ The Rule: Always ask: "Please have your broker email the COI directly to me." An honest pro will say yes immediately.
We Verify The Policy.
We contact the broker directly to confirm coverage and check for exclusions.