Monday, November 7, 2011

Risky Business: Hiring Unlicensed Contractors

The perils of hiring an unlicensed contractor are significant.  They extend to other contractors and their subs, as well as members of the general public.  But by far, the party facing the greatest exposure is the owner.  The risks are numerous, and can sometimes manifest themselves in a surprising way.  In one case, an unlicensed contractor turned the tables on an owner when the contractor’s lack of a proper license was actually used against the owner who had hired him.  The unlicensed contractor was performing work on the owner’s property when he fell and sustained some injuries.  The court held that since the contractor was not licensed, the owner was deemed to be his employer and as such was liable to the injured unlicensed contractor for damages resulting from his injuries.  Surely not the sort of outcome one would expect.

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