Can a contractor get liability insurance if they are unlicensed?

Unlicensed contractors — you guessed it — do not. And so they don’t, because they can’t. Unlicensed contractors are unable to attain liability insurance and worker’s compensation because — you guessed it again — they are unlicensed! It’s a bit of cause and effect.

Who is liable for aiding and abetting unlicensed contracting?

Accordingly, the Blume decision is an important one for contractors. First, it establishes that contractors do not have an affirmative duty to seek out and determine the licensure status of their subcontractors when it comes to liability for aiding and abetting unlicensed contracting.

What are the risks of hiring an unlicensed contractor?

Dear M.K.: Hiring a contractor who is not bonded, insured — and licensed, if applicable — is a risk you don’t want to take. Let’s talk about the importance of insurance first. Contractors should carry two types of insurance: liability and worker’s compensation.

Is it illegal to use a contractor without a license?

These contractors may thwart the requirement to obtain workers’ compensation insurance or pay premiums. Public policy prohibits using a contractor who is not licensed. It is believed these contractors harm the public and undermine the economy in California and the profession by practicing without a proper license.

Summary: The Risks of Hiring Unlicensed Contractors. Failing to hire an insured, licensed, and street-legal contractor could potentially cost you everything you own. If the worst happens, you could be sued into bankruptcy, and most state laws only allow you to keep a very limited amount of wealth or property once you declare bankruptcy.