Hiring a contractor w/out Liability/Workers comp insurance

[SANDBRJ]

What is the name of your state?virginia

My neighbor and I are looking at adding a bulkhead, and are considering the use of a contractor that doesn't have workers comp/liability insurance. We are very concerned about this because I know if they are hurt or hurt someone else I know we are liable. I think I would rather pay more and use a contractor that has full insurance. My question...Is there a document that could be written up that would resolve us of any liability in the event of an accident? I have a feeling that it wouldn't hold up in court.... I also know that any of the contractors 'buddies' would have to sign also.
Any opinions on this would be welcome
Thanks

 

[seniorjudge]

Q: My question...Is there a document that could be written up that would resolve us of any liability in the event of an accident?
A: Yes, it is called an indemnity agreement.

Q: I have a feeling that it wouldn't hold up in court
A: Your feeling is correct.

Q: I think I would rather pay more and use a contractor that has full insurance.
A: Your thinking is correct.

 

[HomeGuru]

Very good responses.

 

[UNCLEBUCK]

SANDBRJ,

I'd like to suggest that you also do the following:

Have the Contractor's insurance agency mail or fax the certificate directly to you. This is standard practice and the way it should be done. If the Contractor has a problem with this, I wouldn't hire him. The reason is that some 'fly by nighter's' will obtain a certificate by putting down a very small down payment and not continuing coverage. This Certificate should also have your name and address on it.

Also be sure that he is licensed and or registered with your State and or local Gov't as required.

For your own protection I would also suggest that you NEVER hire anyone to do work for you 'on the side' or anyone that is not insured and properly licensed/registered. Horror story's from folk's that have made this mistake range from losing deposit money to bad jobs to fly by nighter's that return and burglarize your home.

 

[justinl]

What if's

State: oregon

Similar situation. What if the unlicensed/uninsured contractor gets hurt? What liability does the homeowner have to pay contractor's medical bills/workmen's comp/unemployment? Are there legal ramifications for the homeowner (fines?jail?) for hiring a unlicensed/uninsured contractor?
Why wouldn't an Indemnity Agreement "hold up" to keep the homeowner free from liability of contractor's injury and/or unemployment?



PS. Thank you for this service.

 

[seniorjudge]

Q: Why wouldn't an Indemnity Agreement "hold up" to keep the homeowner free from liability of contractor's injury and/or unemployment?

A: And if the contractor is insolvent, what good is an indemnity agreement?

 

[UNCLEBUCK]

justinl,

I'd also like to add that you should read again the last paragraph in post #4. Also, you should think about why the contractor in question doesn't have insurance coverage in the first place. The first thing an uninsured contractor will tell you is that it cost's a fortune. I would tell you here about what it costs but I don't want you to take my word for it. Call a couple of Insurance Agency's in your area and ask them. You'll be surprised. With few exceptions, uninsured contractor = loser.

 

[lwpat]

uninsured contractor = loser.

Absolutely. However you do have the option of purchasing insurance that will cover everyone. Just be sure that you have enough. Pay all of the bills yourself and give him what is left over. Hire an attorney to be sure that the contract also has you covered. Check to be sure he is properly licensed and that the proper permits are obtained. If it is an extensive project hire an Architect to do the plans and/or inspect the work.

Or just hire a reputable contractor and let him take care of all of the above with the exception of having your attorney review the contract.