It should come as no surprise that Licensed Contractors are required to carry insurance. As such, the insurance is intended to offset any accidents that may occur while performing work on the job. Should the lamp be broken by the installer while working on the residence, or the wall be damaged, or the table be marred - all of these misfortunes can be rectified by the insurance the Contractor is required to possess.

Of course, deductibles often have to be met and should there be claims against the policy, a strong likelihood is that the premiums will increase as in any other policy. However it ought to be reassuring to know that the damage can be restored by the Contractor even if the cost may offset the cost of the job.

Early in my days in tile, I became aware of a tile helper who inadvertently dropped a commode while doing a "favor" for the homeowner rather than causing the owner an additional expense of hiring a plumber. That commode cost the helper $500 which was more than the helper earned in 2 weeks at that time. Had a contractor been doing the job, such damage would have been covered by the Contractor's insurance less any deductible.