Hiring an uninsured contractor can be a risky situation for a business. If an accident or loss occurs during their work, the business may be held liable if the contractor does not have sufficient insurance coverage. By requiring contractors and vendors to have insurance coverage, businesses can protect themselves against potential risks and liabilities.

There are risks to hiring uninsured subcontractors, but you can legally protect your business. You may have to pay for the damages caused by an uninsured subcontractor's negligence or flaws in their work, even if it was not your fault. They may not be licensed, which means they cannot legally perform certain types of work. If they don't carry proper insurance, you could be held liable for their medical expenses.

Will I be liable if an uninsured contractor is injured on my project? According to the Bureau of Labor Statistics there is on average 150,000 construction site accidents each year. Hiring an uninsured subcontractor to work on your job site could open both yourself as well as your client up to financial damages.