The reasons you should not use unlicensed contractors.


Why Unlicensed Contractors Cannot Get Liability Insurance.
Insurance companies do not provide commercial general liability insurance to a person or business providing construction trade services if they are not a licensed general contractor. Insurance companies recognize that unlicensed contractors represent too great risk to insure at any price.


Why Unlicensed Really Means Unqualified.
The consequences of hiring an unlicensed, unqualified person can be disastrous. Your home or business can be damaged or destroyed and in some cases, your family could even be harmed or killed. Even if you escape without injury, you will have little recourse if they refuse to be accountable for the quality of their work.


Why You May Be Liable For Damage Caused By An Unlicensed Contractor.
If you do use an unlicensed, uninsured firm or individual, dont be misled into believing that your homeowners or personal liability policy necessarily protects you. Homeowners who hire unlicensed contractors to perform work may expose themselves to liability for damages and injuries suffered by third parties. A large number of home and building owners have been dragged into litigation involving uninsured contractors.


If an employee of an unlicensed contractor is injured on your home or building, you may be responsible for his injuries or disabilities. In addition, you probably have no protection in the event damage is done to your property or the property of others by the unlicensed contractor during the course of the work. In many cases, the third party would likely have a valid claim against you for negligence- both your direct negligence and the negligent acts of your agent, the relief in a claim against the unlicensed contractor to recover from your loss, since its unlikely hed have personal assets worth pursuing.


Why Unlicensed Contractors Cannot Get Workers Compensation Insurance.
Like general liability insurance companies, workers compensation insurance companies will not provide workers compensation insurance to a person or business that provides construction trade services unless they are a licensed contractor. Insurance companies recognize that an unlicensed contractor represents too great a risk to insure at any price


Why You May Be Liable For Workers Who Are Injured On Your Property.
If an unlicensed contractor or employee of an unlicensed contractor or employee of an unlicensed contractor is hurt while working at your home or business, you are liable for any injuries. This means that you are responsible for the expenses related to emergency care, hospitalization, rehabilitation, and other services. You may also be liable for lost wages and civil damages.


Why Low Bids From Unlicensed Contractors Are Really The Most Expensive.
Because of the illegal nature and non-compliance with state and federal laws, unlicensed contractors often submit lower bids on jobs. Before considering what might seem to be a too good to pass up bid you might just consider why the low bid is usually the most expensive. First, unlicensed contractors have a without completing your job. In these cases, when the deal goes bad with unlicensed contractors, the homeowner has very few options. Also, unlicensed contractors generally operate their business without accountability; disconnecting their phone and relocating their business at the first sign of trouble.


You Could Lose Your House In A Lien Sale.
Most people assume that the risk posed by unlicensed work is limited to poor quality or unfinished work. But it gets much worse! The homeowner or business owner who hires unlicensed contractors is responsible for all fines and unpaid bills to suppliers and the wages of employees who worked for the unlicensed contractor. A mechanics lien can be placed on your home and your home sold to satisfy the lien. If you already paid the unlicensed contractor, you may have to pay twice to keep from losing your house.