Many in our local area recently had hail damage or may be getting ready for spring maintenance around the home. If so, you may be looking for a contractor (roofer, electrician, painter, plumbing, tree service, air condition servicer) right now.
Look for contractors who are licensed and insured. Always ask for proof of insurance before you sign any contracts and call the agent or company on the proof of insurance to be sure the coverage is in force.
Using an uninsured contractor can have significant risks you should be aware of. There are alot of contractor scams and not having insurance may be the first sign. A reputable contractor who has been in business for a while will usually invest in their business by insuring it.
- 1. If an uninsured Contractors causes damage to your property or to you or does faulty work, you may have no recourse if they have no insurance.
If the contractor has insurance in force, you could file a claim on their policy to recover your losses or damages if you are hurt or your property is damaged or your uninsured contractor did not do the job right.
- 2. Unlicensed Contractors may not have Worker's Comp.
If a contractor gets hurt on the job on your property and doesn't have workers compensation, the contractor can sue you for bodily injuries. If they have workers compensation coverage their workers compensation coverage will pay for bodily injuries and lost wages.
- 3. You may be held liable for property damage by your uninsured contractor.
If an unlicensed, uninsured contractor causes damage to someone else's property you may be responsible for their acts so if they have general liability insurance it would cover them. If they do not, you could be held liable.
- 4. A Subcontractor may place a lien on your property
If an unlicensed contractor fails to pay his subcontractors those subcontractors can file a lien on your property since that's where the work was done. Use a licensed contractor and if there's a problem you can let the insurance carriers handle it.