Am I in the wrong for holding payment on a job because a contractor refuses to provide a copy of his insurance?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I in the wrong for holding payment on a job because a contractor refuses to provide a copy of his insurance?
I hired a sub-contractor to perform roofing work for a client of mine through my company, under the impression he was licensed and insured. I told him I was paid by invoice and that it was a 30 day process but I would try to pay him some before if I could. I did pay $300 of the $1090 before the 30 days. I now have the rest of the payment in a check waiting to give him and asked that he provide me with a copy of his insurance for my records because it is a requirement by my client that anyone who performs work to be insured. He isn’t willing to give it. Can I withhold money until he does?
Asked on September 15, 2011 under Business Law, Louisiana
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I would be concerned if the person who did the roofing work refuses to provide you with the requested insurance policy. If you have concerns that the roofer is not a licensed roofer, you might look him or her up online with your state's contractor's licensing board.
In California, if a person who is not a licensed contractor performs work requiring a contractor's license, the unlicensed worker cannot bring a lawsuit for money owed. This may be the case in your state. If so, you are entirely justified in holding back the money based upon documentation being provided to you as stated in your question.
If you have a written sub-contract for the work of the subcontractor, I would carefully read it to see what duties are required by him or her about providing you insurance information. From what you have written, it seems you are justified in holding back the money.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.