It is Always Best to Use a Licensed Contractor

“Never take a risk you can’t afford to lose.” When you do not apply for the necessary permits or choose an unlicensed contractor, you are indeed taking a very big risk. Your general contractor is legally responsible for everything that happens on a job site, even for the subcontracted jobs.

Because contractors have a lot of responsibility and liability, they should carry contractor’s liability and workers compensation insurance to protect the customer in the event something goes wrong on the job site.

What Can Go Wrong With Unlicensed Contractors?

As the customer, it is important to hire licensed and insured contractors to protect you from having the financial consequences if the job does not go as planned or someone is hurt on the job. Many things can go wrong on a construction job. It is important you know the insurance carrier will be the ones paying in the event there is damage to power or water lines or if the workmanship is not up to par.

Remember: Beware! If you do not hire a contractor who is licensed and insured, you become the general contractor. You will be responsible for any damage or medical bills if a subcontractor is hurt on the job. Standard homeowners policies will not cover damages if you are using an unlicensed contractor. Landlords can be at risk as well when renters use unlicensed contractors to do work on their homes since courts can hold the property owner liable.

Why Hiring Friends as Contractors is Dangerous
Entering into a construction arrangement with a friend, does not make the risks disappear. If your friend is hurt on the job, he may sue you for medical compensation. It is safe practice to ensure any contractor or friend doing work on your home as their own insurance and workers compensation insurance to cover any injuries that happen on the job.

The Risks of Hiring Unlicensed Contractors

The risks involved with hiring an unlicensed and uninsured contractor are not worth any cost-saving benefits. Using an unlicensed and uninsured contractor can potentially cost you everything you own. You could potentially be sued into bankruptcy. Most insurance policies exclude damages that occur when hiring an unlicensed contractor. While it may be tempting to save money, it could potentially cost you much more in the long run.

Jacobs Insurance Agency

Jacobs Insurance Agency cares about you and your family.. Jacobs Insurance Agency offers a broad range of coverage and works with many insurance agencies and can provide quotes from different companies. Price is important. However, Jacobs Insurance Agency can determine the proper amount of coverage needed for your business and select the option that will save the most money. Using Jacobs Insurance Agency ensures you are protected by the best.

Insurance Agency West Palm Beach

Jacobs Insurance Agency is an independent agency specializing in homeowners, auto (including motorcycle and RV), boat, umbrella, and commercial insurance. With over 30 years’ experience in the South Florida area, our specialty is designing a tailored program of coverage to fill your unique insurance needs: whether personal, commercial, or both. Our passion is providing top-notch service and peace of mind to our clients, and we thank you for allowing us to serve you. Call us at 561-967-8400 or visit our website.


Jacob’s Insurance Agency
2328 S. Congress Avenue, Suite 2A
West Palm Beach, FL 33406
Main Phone: 561-967-8400 ext. 102
Wellington: 561-220-1499


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