Unlicensed Contractors: How They're Getting Caught and Arrested
Download MP3 Introduction:
- As a licensed contractor, you often encounter clients with lower quotes from unlicensed or improperly insured competitors. These individuals lack the right documentation, insurance, and surety bonds, putting you at risk.
Central Florida Sting Operation:
- A sheriff's office in Central Florida conducted a sting operation to investigate unlicensed contractors.
- They put out ads for home renovation and roofing services, and contacted individuals to submit quotes.
- Many of these individuals were unlicensed or lacked proper insurance (such as work comp), leaving clients vulnerable.
Why Insurance and Licensing Matter:
- Liability Risk: Hiring an unlicensed or uninsured contractor can make you liable if an injury occurs during the project.
- Legitimate Contractors vs. Unlicensed Competitors:
- Legitimate contractors face higher costs due to insurance, surety bonds, and licensing fees.
- Unlicensed contractors can offer lower prices, but at the risk of poorer work and liability for the homeowner.
Reasons for Operating Unlicensed:
- Some unlicensed workers may lack experience, or may have criminal records or drug problems, making it difficult to get a legitimate job in the contracting industry.
- These workers often turn to handyman or odd jobs where they can avoid background checks, insurance, and bonds, posing risks to clients.
Why the Difference in Price?
- Legitimate contractors pay higher wages to attract quality workers who are bonded, insured, and have the necessary training.
- Lower prices often mean lower-quality workers, who may have been excluded from legitimate companies due to their backgrounds.
The Growing Issue of Unlicensed Contractors:
- Unlicensed workers are becoming more common, with some markets seeing hundreds of individuals operating without the proper credentials.
How to Protect Yourself as a Client:
- Always check that a contractor has a valid license and can provide proof of insurance.
- Call the insurance company to verify that the contractor’s insurance is still active, as some may cancel it after receiving a policy.
Conclusion:
- While unlicensed contractors may seem like a bargain, the risks of injury and liability for the homeowner outweigh the lower price. Always verify credentials before hiring to ensure a safe, reliable project outcome.
