Often times an uninsured contractor or “a handy guy” you know may be a cheaper outlet for you and your home improvement project.
There are risks attached to uninsured contractors.
The following risks are associated with uninsured contractors:
1) Property damage – if a contractor does damage to your property, their insurance kicks in to cover costs. Without insurance, the damage to your property could be left to you to fix. Contractors with insurance have Products and Completed Operations. Even if it’s years after a project, if you found a contractor did work that was not up to code or up to your standards, the Products and Completed Operations would pay for the proper repairs you will need.
2) Medical Bills – If someone is working on your roof for example, and they do not have workers compensation coverage, you are technically the employer. A $1,000 roof repair can quickly turn into $10’s of thousands in medical bills you could be held liable for.
3) 3rd party injury– If someone were to be injured by the contractors work without insurance, you could be held liable to pay for their medical payments.
Always find out if your contractor has the proper insurance coverage before starting your next renovation.