Hiring someone to work on your home who does not carry general liability insurance can expose homeowners to serious financial risk in Missouri and Arkansas. While uninsured contractors may offer lower upfront prices, the lack of coverage can quickly turn a small project into a costly and stressful problem.
Understanding this risk before work begins can help you avoid unexpected expenses and liability.
What Is General Liability Insurance—and Why Does It Matter?
General liability insurance helps pay for property damage and bodily injury caused by a contractor’s work. This coverage is designed to protect both the contractor and the homeowner if something goes wrong on the job.
When a contractor carries general liability insurance, their policy—not yours—may respond if damage or injury occurs as a result of their work.
Property Damage Risks of Hiring an Uninsured Contractor
Without general liability insurance, there may be no coverage if a contractor accidentally damages your home. Common examples include:
- Roof or siding damage
- Plumbing leaks or water damage
- Electrical system damage
- Flooring or structural damage
In these situations, homeowners may be forced to:
- File a claim on their own homeowners insurance
- Pay for repairs out of pocket
- Pursue legal action to recover costs
Even when a homeowners policy responds, a claim can impact future premiums or insurability.
Injury and Liability Exposure for Homeowners
Property damage isn’t the only concern. If a visitor, family member, or third party is injured due to the contractor’s work, the liability exposure can be significant.
Without general liability insurance in place:
- Legal defense costs may fall on the homeowner
- Lawsuits could involve personal assets
- Medical expenses may not be covered
In some cases, injured workers or visitors may attempt to hold the homeowner responsible when no contractor insurance exists.
Why Reputable Contractors Carry General Liability Insurance
Established, professional contractors typically carry general liability insurance as a standard part of doing business. This coverage:
- Protects the contractor’s business
- Protects the homeowner’s property and finances
- Signals professionalism and accountability
A reputable contractor should have no issue providing proof of current general liability insurance before work begins.
A Simple Step That Can Prevent Major Problems
Before hiring anyone to work on your home, always:
- Ask for proof of current general liability insurance
- Verify that the policy is active and adequate for the job
- Avoid contractors who cannot or will not provide documentation
This one step can help prevent major financial and legal headaches.
How Uninsured Contractors Can Affect Your Home Insurance
For homeowners across Missouri and Arkansas, hiring an uninsured contractor can create coverage complications if something goes wrong. A review with an independent insurance agency can help you understand:
- How contractor-related claims may impact your homeowners policy
- Where liability gaps may exist
- How to better protect yourself before a project begins
Being proactive before work starts is far easier—and far less expensive—than dealing with the consequences after an accident or loss occurs.
If you’re planning a home project, make sure the contractor’s insurance is in place so your home, finances, and peace of mind are protected.