It is because of unlicensed contractors that the saying, “There is a high cost to the low offer” was born. Problems are often caused by hiring an unlicensed contractor. These individuals are more likely to cause problems than hiring licensed contractors. Unlicensed contractors will always be the lowest bidder. This is because they do not pay insurance or taxes and cut corners wherever they can. They don’t usually have enough experience or knowledge to qualify for a license. Worse, their license has been suspended due to non-compliance.
Uninsured contractors can pose serious risks to consumers. This could be if the project is canceled, a worker or employee gets hurt on the job or if the contractor runs away from the job. A commercial general liability policy typically covers property damage caused by defective materials installation. There will not be any insurance coverage if a project is completed but there are subsequently property damages and leaks. Unlicensed individuals are usually judge-proof and the consumer must go after them.
The homeowner’s policy may also cover an unlicensed worker or employee who is injured while on the job. However, the homeowner could be subject to increased premiums as well as civil penalties if the plaintiff sues. Florida offers a severe remedy to consumers who have hired unlicensed Broward County Florida contractors. Unlicensed contractors must pay all money paid by consumers under Business and Professions code. This applies even though the consumer was aware that the contractor wasn’t licensed.
Let’s get to the bottom
Before you hire, please verify the contractor. This could mean calling, looking online at licensing websites or asking for recommendations. It can help you save thousands of dollars if you are diligent.