Unlicensed Contractor with Liability and WC insurance

[Rossn]

I have a remodel/addition for which I have pulled the permit, and will be performing some of the work (plumbing, radiant heat, electrical), and have lined up licensed contractors for the HVAC and roofing.

I am also hiring a contractor for the demo, framing, windows, trim, and to manage a few other unlicensed trades (drywall, paint, etc). I was referred to a guy by my architect friend, whom he crossed paths with on a prior project.

He indicates he is not a licensed contractor, but that he carries liability and worker's compensation for the guys working for him. He has a web presence which shows he typically performs this type of work, so there is no question he is legitimate.

The work is scheduled to begin mid next week, and I have been thinking through the liability aspects recently and need some additional information. While I will try and consult with an attorney, I'd like to do some research this weekend on the topic.

Can anyone refer me to any resources where I might learn more on the topic?

I'm also trying to understand that if he, as the owner of the LLC, does not have workman's comp for himself, if his personal injury liability sits on me as the homeowner/GC, and what homeowner's insurance I need to ensure I have in place for personal injury of a contractor.

 

[Sylvan]

If you have homeowners insurance then why not contact your agent?

Years ago a lady asked me to clean her gutters I said we only water jet the leaders at the base and main sewers etc.

She made a deal with one of my employees to work for her on a Saturday.

She loaned him a ladder he fell and broke his arm

She had the gall to ask me to put him on my comp insurance.

I fired the employee BUT told him he has a case suing her for it was her ladder (2 party case) and he should be covered under her homeowner's insurance which was the case

 

[Sponsor]

 

[Rossn]

Thanks, Sylvan. Yes, I am definitely going to be contacting my insurance agent on Monday, as a safety net. However, for people I'm hiring as contractors, I would like them to own the liability for them and their employees, and just trying to ensure I understand how I know I am covered in that respect.

 

[WorthFlorida]

This guy that does contractor work without a contractor license means he cannot pull permits on other people's property. If he can then he uses another person's license (under agreement) to pull permits. This is quite common in Florida. A man wants to start a business and doesn't yet have a GC license. The real GC for the permit gets paid and then he has nothing to do the contract.

You the homeowner must pull permits and this can cause issues as your are fearing, liability. Regardless of workers comp insurance it still cannot rule out a lawsuit from anyone for any reason getting hurt on your property. Then what happens if an inspection fails? Who pays the extra cost to redo? What happen when one of the contractors you hired hires a subcontractor? Worse yet he dies before the job is complete and was paid for most of the work. If this is going to be quite a large dollar addition do consult with an attorney as you already stated. He'll probably put together a disclosure form for any liability or injuries on you property.

You do want the Roofer and HVAC companies to pull the permits for their work to protect you. Most jurisdictions that issue permits must have proof of insurance. Worker Comp Ins is not always required for the owner of the company and for his workers, that could be questionable. I came across a parishioner at my church where I worked as the maintenance director. He was honest and a nice guy and gave me a bid to pressure wash the entire exterior of the church, roof and all. It was a good price and I said all I need is a certificate of insurance for liability and workers comp. He had no insurance for his workers because they were technically hired as a subcontractor, not as employees. I gave the job to another contractor as required by the dioceses for insurance requirements.

As far as the roofer, here on Florida most guys on the roof do not work for the roofing company you hired. I had my roof replaced in 2017 and the roofer was licensed and his family has been in the roofing business for 50 years or so. While the work was being performed I gathered one or two other companies were hired to do the work.

You do want copies of his insurance and good contractors always carry them when giving proposals for jobs.

 

[Rossn]

Thanks for the information. Very good information.

The situation with the roof is rather complex, given it is through an insurance claim and I had some deadlines to get things file to have insurance cover it, so I had to pull the permit. However, the work is being done with a highly reputable company known for their high quality craftsmanship, and since it is a standing seam roof, supposedly they have their own crews putting it on (tear-off was completed previously and now is just I&W until the other roof modifications are completed.

I think the bigger general concern is about making the owner's liability doesn't fall on me, and that his guys are covered under worker's comp.

 

[Breplum]

Unless you buy an expensive rider (then, doubtful your ins. carrier even offers it), YOU are personally liable for the uninsured injury if the contractor himself/herself becomes injured.

 

[Sylvan]

Thanks, Sylvan. Yes, I am definitely going to be contacting my insurance agent on Monday, as a safety net. However, for people I'm hiring as contractors, I would like them to own the liability for them and their employees, and just trying to ensure I understand how I know I am covered in that respect.

NYC will not allow me to do any business /filing any jobs etc. without being fully covered . Also the majority of my accounts are nursing homes, industrial and commercial accounts and they always have my certificate of insurance in their files and updated yearly

 

[Jeff H Young]

Good Luck with Project! there is always risk ask your insurance company or Lawyer about hiring unlicensed and let us know if you have any personal liability or if the insurance company will pay