How do you handle insurance for your contractors?

[Bruce L.]

So, I'm getting ready to hire some contractors, not sure if they are license or not, some of the contractors were refer to me by realtors, and friends.

How do you handle insurance should something happen to one of them?

[John Chapman]

Bruce L. For what it's worth, it really depends on the state you live in. California, for example, is horrible compared to Texas, where the standard to hold a property owner liable for a contractor's negligence is exceptionally difficult. Realize that's kind of a wimpy answer, but before you start requiring licenses, bonding, and insurance, I would figure out your state's laws and your actual potential liability.