What Happens If a Contractor Works Without Insurance? 

Operating as a contractor or subcontractor in Cranston, RI comes with significant responsibilities, including the need for proper insurance coverage. Working without insurance can expose your business to serious legal, financial and reputational consequences.

Legal Consequences for Uninsured Contractors

Rhode Island law requires most contractors to carry certain types of insurance, such as workers’ compensation and general liability. Failing to maintain these policies can result in:

• Fines and penalties from state regulatory agencies
• Suspension or revocation of your contractor’s license
• Legal action from clients, employees or third parties if an accident occurs

In some cases, working without insurance may even lead to lawsuits that threaten your business’s future.

Financial Risks and Liability

Without contractor insurance, you may be personally liable for costs arising from:

• Property damage at a job site
• Injuries to employees, subcontractors or bystanders
• Faulty workmanship or construction defects

These expenses can quickly add up, putting your assets and livelihood at risk. Even a single incident could result in thousands of dollars in damages or legal fees.

Reputational Damage

Clients and general contractors often require proof of insurance before awarding contracts. Operating without coverage can:

• Limit your ability to secure new projects
• Damage your reputation within the construction community
• Lead to lost business opportunities and strained professional relationships

Project Delays

Uninsured contractors may also cause delays if an incident occurs and legal or financial issues arise. These disruptions can affect timelines, budgets and client satisfaction.

How Cormack-Routhier Agency, Inc. Can Help

Our team specializes in helping contractors and subcontractors in Cranston, RI secure the right insurance for their needs. We guide our clients through state requirements, recommend tailored coverage options and provide ongoing support to help you stay compliant and financially protected.

Don’t let a lack of insurance put your business at risk. Contact us today to discuss your coverage needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.