It is quite tempting to choose a painting contractor who does not have a license and/or who does not have insurance. Even while they can provide you with an opportunity to save money in the short term, the potential risk that they pose to you in the long term might not be worth the money that you could save in the short term. Think about the reality that hiring a Painting Contractor that isn’t insured is a serious threat to your current financial situation. If a worker is injured on your property and the painting “contractor” does not have worker’s compensation insurance, you could be held financially responsible for their medical bills.
In what ways might your decision to choose an uninsured painting contractor put you in jeopardy? It is the direct responsibility of the homeowner to avoid hiring an unlicensed contractor. As a consequence of this, the homeowner is responsible for any issues that arise as a result of the work performed by an unlicensed contractor.
If an employee of a painting “contractor” gets hurt while working on your property and needs to spend a significant amount of time in the hospital, various insurance possibilities may come into play depending on the status of the contractor. In the event that the contractor possesses a valid license, the costs will be reimbursed by the workers’ compensation coverage that he maintains. If he does not have a license and does not have insurance, then your coverage will take precedence.
In the event of a severe collision, the party who was hurt will almost certainly initiate legal action in order to seek compensation for the harm they sustained. If you purposefully hire a contractor who is not licensed, and an employee is wounded while the contractor is performing the contract, your insurance company has the right to deny the claim, leaving you accountable for any medical or personal injury costs that arise as a result of the injury. In the event that the insurance company is successful in obtaining a judgment against you, a lien may be placed on any future assets that you acquire (including an inheritance or money from your business). Your credit report will reflect any judgements that have not been paid in full until such time that they are removed.
Before you choose a painting contractor, check to see that they are covered by worker’s compensation insurance. It is important that you take the time to verify with the insurance company that the coverage is still in effect and that it will continue to be so throughout the duration of your engagement.