It is very important that your contractor has insurance, IT protects YOU as the homeowner. Do you know the difference between workers comp vs general liability? Here is the short answer to their roles and the difference between them.
General liability is to protect the structure against an accident or faulty workmanship. For example, if a roofing company, removed your shingles, and a thunderstorm appeared suddenly and poured rain inside the house. General liability coverage would cover all the water damage.
Workers Comp is to protect your financial interests against an injury or a worker on your property. For example, if a roofer was to fall off your roof, and the company didn’t have workers comp, you could be liable for all of his injuries. If the company has workers comp, then the homeowner has no liability for that injury.