What is my liability from an uninsured contractor?

Will I be liable if an uninsured contractor is injured on my project?

Disclaimer: you should always talk to your tax professional and or insurance agent for more detailed information or questions.

Let us face it, injuries happen all the time and almost always out of your control. According to the Bureau of Labor Statistics there is on average 150,000 construction site accidents each year.

So, what happens when a subcontractor is injured on your job site?

What if this same subcontractor is uninsured?

Well, it is tough to say as each scenario can play out differently but there is a lot of cause for concern. Hiring an uninsured subcontractor to work on your job site, whether it be a residential or commercial project, could open both yourself as well as your client up to financial damages such as medical bills, lost wages and much more.

It is a good idea to check with your insurance agent about your coverage and what could happen. They may cover some difference and they may not cover anything; especially if you knowingly hired an uninsured contractor for your job.

How do you protect yourself?

Request proof of insurance and confirm what their insurance covers.

Contractors that do not have a worker’s compensation coverage in their insurance policy often save costs on insurance overages, which means they can afford to charge lower prices.

Lower costs do not always mean the best for your project. It only takes one accident to derail costs and open both you and your client up to financial damages.