4 Reasons to Use a Licensed Contractor
Now that you’re ready to begin your project…here are a few reasons to use a licensed contractor.
PROPER INSURANCE/BONDING/WORKER’S COMPENSATION
In order to be licensed by the State of Tennessee (most states follow this same law), your contractor must be insured and/or bonded. Why is this important? Well, let’s say you’re having work done on your kitchen, and in the middle of it the water line is cut and floods your kitchen. It’s likely your homeowner’s policy wouldn’t cover this and you’ll be on the hook for it. If your contractor has insurance, then you’re good. The same applies for Worker’s Compensation. If their employee is hurt on the job and they don’t carry worker’s comp, then you’re once again likely to be responsible for paying for any claims they may make.
Tip: Don’t hesitate to ask for proof of licensing, insurance/bonding, and worker’s comp (contractors can also be exempt from worker’s comp if they have zero employees…this is an acceptable replacement for carrying worker’s comp).
ABILITY TO APPLY FOR PERMITS
If your contractor needs to pull permits for an expansion onto a house or for any other reason, licensed contractors do this regularly and know the best processes. Unlicensed contractors are not always allowed to pull permits.
IT’S THEIR CAREER
If a person has gone thru the process to become a licensed contractor, you can be assured they’re doing so to make a career out of it. The costs and the process of getting licensed are not something that you do overnight. Therefore, a person who is licensed is more likely to be serious in their work to ensure they keep their license by following all the codes that are applicable in their state.
VERIFYING A LICENSE
Finally in closing, don’t hesitate to verify the contractor’s license. In Tennessee, all you need to do is go to http://verify.tn.gov. From there, simply type in the person’s name/company and choose “contractor” in the profession dropdown box. You’ll then see if the person is licensed, when it expires, and their monetary limit on how large of a project they can undertake.
When you meet with your contractor in person, you should ask to see their license, proof of their liability insurance and workers compensation. Don’t feel bad at all for asking for this proof. If the contractor has a problem providing this info to you, then I would thank them for their time and simply move on to someone else.