10 Jun Hiring an unlicensed or uninsured contractor puts you at risk!
Hiring an unlicensed contractor might mean you pay less upfront because they tend to maintain lower overheads. They’re not paying for their license, bond for their work, or even liability or workman’s comp insurance. But hiring an unlicensed contractor could mean you find yourself held liable if something goes wrong. On the other hand, a reputable contractor maintains a valid license at all times and comprehensive insurance. They ensure their employees are well-trained and skilled.
Always do your research before you hire any contractor, and you should not hesitate to ask a contractor for their insurance coverage and license number.
Typically, unlicensed contractors don’t carry workman’s compensation insurance or general liability insurance. That should be a huge red flag for any homeowner! According to the Better Business Bureau, “…the homeowner then becomes the employer and is responsible for any injuries or accidents that occur on their property. A simple home improvement project could turn into a bill for tens of thousands of dollars more, all because the homeowner hired an unlicensed contractor.”
Third Party Negligence:
If your contractor turns out to behave negligently while working on your project, and they are unlicensed and uninsured, you could be held legally and financially responsible for their negligence. Here’s a good example: You’ve hired an unlicensed and uninsured landscaping contractor to do some work in your yard. While there, they destroy your neighbor’s fence and a tree that lands across their driveway cracking it. Your neighbor needs to hold someone liable for the necessary repairs. The contractor isn’t insured. Guess who’d then be held responsible for the repairs? Given that you hired that contractor, it would be you.
A reputable contractor will always be transparent and offer straightforward answers to your questions and proof of licensing and insurance. If they’re not open or hesitate to provide proof, look elsewhere.