Warning! Before Hiring Your Next Contractor…

Before you hire your next contractor, Beware!

With the slow growth in the construction market these last few years, many contractors have dropped their insurance coverage, and most no longer carry Workers Compensation insurance.  So what does this mean for you the homeowner?


When a contractor steps onto your property and does not have proper insurance, you the homeowner take on that risk and responsibility.  If one of the contractor’s workers falls off your roof and gets hurt or worse gets killed and his workers compensation lapsed or is non-existing, then you are responsible and can be sued by the injured party.

So why take the risk?  Well if you are supposedly saving a few thousand dollars using a cheaper contractor, that could be a sure sign he does not pay for any insurance especially workers compensation.  Why, because as much as 36% of the labor cost is for liability and workers compensation insurance, and contractors who need the work often drop their insurance in order to drop their price to you to win the job, but at your expense.  The average savings is $2,000 or more.

So that great deal you think you are getting might not be as wonderful as you think.  Do your homework and protect yourself, it is not worth the risk.

Matthew Miglin

    Twitter not configured.