Every licensed contractor in Utah must carry both liability and workers compensation insurance. This law is in place to protect the consumer not the general contractor. Most legitimate contractors operate under a corporation or a LLC that limits their personal liability in the event of business loss. So their personal assets are protected in the case of catastrophic lose.
If a home owner decides to “save a little money” by hiring a non licensed handy-man it is very unlikely that the handy-man will have insurance. This leaves the home owner 100% liable for any damage to their home or personal injury incurred during construction.
Two scenarios will illustrate this point:
1. There is a fire during construction. You’ve hired a licensed contractor and he’s pulled a permit. The contractors insurance will cooperate with your home owners insurance to repair damage to the home and the your personal property.
On the other hand if you hire a non licensed contractor who does not obtain a building permit you are personally responsible to repair the fire damage. Your home owners insurance will most likely deny the claim.
2. If a person were to seriously injure themselves while working on your home and they were not insured and had not obtained a building permit, guess who is liable for the medical costs? Your home owners insurance can deny the claim.
In the long run it makes sense to use licensed contractors who play be the rules. The cost difference is marginal. You’ll know your assets are protected.
Basement Pro carries 4 times the state requirements for insurance. This is for your protection and peace of mind.
Call us if you’d like a free quote on your next home improvement project. 801-706-0148