Risks of Hiring an Unlicensed and Uninsured Contractor

Learn the risks or hiring an unlicensed and uninsured contractor from Mississippi Landsource. At Landsource we have decades of experience working with contractors. Learn from the mistakes we made and save yourself some money when doing home improvement projects. 

If you have a big home improvement project coming up, you may be tempted to hire an unlicensed contractor, who may offer lower rates and faster completion times.


But beware: While it seems like a good idea at first, hiring an unlicensed contractor can lead to more problems than you bargained for, and may even put your family’s safety at risk. Unlicensed and uninsured contractors can take your money, get you thrown in jail, do shoddy work, leave projects unfinished, or even become seriously injured on your property — leaving you with no recourse.

Keep reading to know the risks and the headaches that come with hiring an unlicensed or uninsured contractor and how to find a good one who will get your project done right. 

Risks of Hiring an Unlicensed and Uninsured Contractor   

Problems with Local Building Codes

Building codes are designed to protect homeowners from shoddy work that might lead to serious safety hazards down the road. These rules vary by jurisdiction, but they generally cover things like electrical and plumbing systems, structural supports and heating and cooling units. An unlicensed contractor may not be familiar with the latest building codes or may even disregard them altogether. He may use substandard materials and build structures that don’t meet code requirements, which can lead to problems down the line, from roof leaks to electrical hazards and more. 

If a local inspector finds code violations in your home, you will likely be required to fix the problem under local law — which can cost a lot of money out of pocket. Even if inspectors don’t discover any issues, failure to comply with building codes could pose a risk to your family’s safety in the future.

No Guarantee on Workmanship

When you hire a licensed contractor, they typically stand behind their work with warranties and guarantees which protect your investment in case something goes wrong down the road. With an unlicensed contractor, however, there is no warranty protection if they turn out a subpar product or their workmanship causes damage to your home later.  This means you’ll have no recourse because most of the time, it’s not easy to get him back to fix it — especially if he’s already taken your money and run. 

You Can Be Held Liable with Any Damage

There are a lot of reasons why you should hire licensed contractors, but one of the main reasons is you could end up being responsible for their injuries if they are not licensed.

When you hire a licensed contractor, you are signing a contract with them and their company. When the contractor signs the license agreement, they are agreeing to be held liable for damages should they cause any during your project.

If you choose to hire an unlicensed contractor instead, you could end up as the one that is liable. This is because, technically, an unlicensed individual is not a contractor but rather an employee. As such, if an unlicensed worker is injured on your property and does not have worker’s compensation insurance to cover their medical bills, you may be liable for those expenses. 

It’s Illegal 

Hiring an unlicensed contractor is illegal in some states, including California and Florida. Penalties for hiring one differ by state but could include fines for both yourself and the contractor if discovered by local authorities. 

Skip the Headaches and Risks. Hire a Licensed and Insured Contractor! 

When you hire a contractor, you may not know what you’re getting into. They could be experienced professionals, or they could be someone who just got off the turnip truck. And unless you do some research, there’s no way to know for sure.

But when you hire our company, you can be confident that our contractors are licensed and insured and have the knowledge and expertise to deliver quality work. With our contractors, you can rest assured that your project will meet all local building codes and regulations.

We’ve talked to so many homeowners who have been duped by con artists and shady contractors that we’ve lost count. And that’s why we’re here today — to help you avoid the same headaches and heartaches that other homeowners have gone through before you. 

If you are looking for a contractor for your home remodeling projects, reach out to Mississippi Landsource, and get one of our many vetted contractors! Didn’t find what you’re looking for today, check out one of our sister sites like Oklahoma Landsource.  And if you are interested in a barn for your property checkout Sunset Wood Barns.