Contractor Liability: The Risks of Going Unlicensed

Contractor Liability The Risks of Going UnlicensedA recent sting operation exposed eight contractors who were not licensed in an attempt to renovate a home. The bids exceeded $500, which is the legal limit for requiring a license. To avoid situations like these, contractors should be properly licensed and carry Lake Tahoe General Contractors Insurance.

As a consequence, the eight contractors are subjected to six months of potential jail time and/or up to $5,000 in fines, according to Record Net. The individuals who will be penalized are David Christopher Wagner, Austin Allen Beebee, Wayne Hugh Varn, Kenneth Raymond James, Ken James Painting, Kyle Thomas Kraft, Salvador Casillas Marquez, and Jesse Martin Zamora.

This sting was conducted by contacting the offenders with local business cards and advertising. While 9 out of the 10 contacted arrived at the home for the bid, the above eight contractors submitted bids and were consequently penalized.

Record Net also mentions that the offenders are scheduled to meet in court on October 6th to determine proper repercussions. CSLB, the sting operator, stated that they are cracking down on unlicensed workers “which feeds a multibillion-dollar underground economy in California, endangers the public, and created unfair business competition for licensed law-abiding contractors.”

Another risk of using unlicensed contractors to complete construction work is additional liability concerns for the project owner. Say, for example, the contractor does not meet local building codes or does not obtain the proper permits to complete the job. As a result, the home or building owner would be held liable for the repairs to ensure their compliance. This could negatively affect your reputation and instigate legal battles.

At Cal-Nevada Insurance Agency, we specialize in providing coverage for contractors like you. We have a deep understanding of the unique that you might face on a daily basis and seek to write policies to give you peace of mind on the job. To learn more, we invite you to contact us today at (866) 670-5948.

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