Why Hire a Licensed Demolition Contractor?

Licensed Contractors Have Liability Insurance

This could quite possibly be the most important differentiating factor between a Licensed Vs non Licensed contractor. Demolition is a costly and dangerous venture. In order to protect your investment and make sure your demolition dollars are spent correctly, you need to know you will be financially secure in case something goes wrong. Even though licensed and unlicensed contractors alike will promise the world to you and offer guarantees of safety, there is always risk when demolishing things. This is why choosing a contractor who's licensed and insured is so important. The California State License Board has a vigorous, 6 month processing time for qualifying and approving licensed contractors. Part of this process requires contractors to apply for MULTIPLE types of liability insurance, before receiving their license number. The insurance has to be paid for and sent in to the office. You can click the link and actually look up any contractors license to make sure it's active, and see a list of their current insurance policies. Here is a list of the types of policies you can expect to see, and what makes them so important.

General Liability :

Demolition contractor general liability insurance is essential for protecting your business from potential financial and legal risks. This insurance covers third-party claims of property damage, bodily injury, or personal injury that may arise during demolition projects. For example, if debris accidentally damages a neighboring structure or someone is injured on-site, liability insurance ensures that the financial burden of legal fees, medical costs, or repair expenses doesn’t fall solely on your business. Without it, these unexpected events could lead to significant out-of-pocket costs, jeopardizing a company’s financial stability. A non-licensed contractor won't have insurance, and if an accident occurred they'd be required to pay out of pocket. If they couldn't afford to pay for the damages, you as a homeowner may be liable. In short, general liability insurance is a vital safeguard that helps you operate with confidence and focus on growing your demolition business.

Workers Compensation

As a contractor, ensuring the safety and well-being of employees is not only a moral responsibility but also a smart business decision. Workers’ compensation insurance provides crucial protection for both contractors and their employees. In the event of a workplace injury, this coverage helps pay for medical expenses, lost wages, and rehabilitation costs, alleviating the financial strain on both the injured worker and the business. For contractors in California, having workers’ compensation is actually a legal requirement. Oftentimes, unlicensed contractors are able to charge less because they skip out on paying for workers comp and instead pay people under the table with cash. While this may save money on the front end, if one of those employees got hurt on the job, there would be absolutely no way for them to have their medical bills paid for. This could leave someone seriously injured with no way of recovering. By having a licensed contractor with an active workers’ compensation policy in place, customers can feel assured that every person working on that job site will be compensated, and fully taken care of in the instance of an accident.

Contractors Bond

A contractor’s bond is a financial guarantee that ensures a contractor will fulfill their contractual obligations to customers, comply with local regulations, and complete the work as agreed upon. Essentially, it’s a form of protection for customers, ensuring that the contractor’s work meets industry standards and that any issues, such as unfinished projects or subpar performance, can be addressed. If the contractor fails to meet these obligations, the bond provides financial recourse for the customer, covering costs for corrections or unfinished work.

For customers, working with a bonded contractor offers peace of mind and a layer of security. It demonstrates that the contractor is professional, trustworthy, and committed to delivering quality work. By hiring a bonded contractor, customers are protecting their investment and reducing the risk of potential disputes, delays, or financial losses.

Workers Bonds

A worker bond, often referred to as an employee or fidelity bond, is a type of insurance that protects customers from financial losses due to unethical or illegal actions by workers, such as theft, fraud, or property damage. For demolition customers, hiring a contractor with a worker bond provides reassurance that they are protected against any misconduct or negligence by the contractor’s employees while on the job site.

This type of bond is particularly valuable in demolition projects, where large-scale property disruption and expensive equipment are involved. It ensures that if an employee’s actions result in a loss, the customer can recover damages through the bond. For customers, a worker bond reflects the contractor’s commitment to accountability and ethical business practices, building trust and confidence in the contractor’s services. It adds an extra layer of financial protection, giving customers peace of mind throughout the demolition process.

Licensed Contractors take Better Safety Measures

Because of the vigorous and costly process obtaining a license can be, it basically forces Contractors to abide by strict safety measures when performing any type of demolition. Why would a contractor spend years getting a license and thousands of dollars on insurance just to carelessly cause accidents and increase their insurance premiums. Besides being morally right to have insurance, it's also a smart business decision. Here are some safety measures that a licensed contractor has to take in order to stay compliant in California.

Safety Matters - Bigly

When undertaking a demolition project, safety should be the number one priority. This is where hiring licensed demolition contractors makes a significant difference. Licensed contractors are not only CLSB approved trained professionals, but they also adhere to strict safety measures that are essential for protecting workers, bystanders, and surrounding structures. These measures are guided by federal and state regulations, including OSHA (Occupational Safety and Health Administration) standards, ensuring a level of precision and care that unlicensed operators simply cannot provide.

One of the cornerstone requirements for licensed demolition contractors is compliance with OSHA standards. These regulations are designed to minimize workplace hazards and ensure that every project is executed as safely as possible. From ensuring proper site inspections to enforcing fall protection measures, licensed contractors are equipped to address potential risks proactively. For example, OSHA mandates hazard communication, which means that contractors must identify and communicate any toxic or hazardous substances present on-site. This ensures that the crew and any stakeholders are fully informed of the dangers and how to mitigate them. OSHA can literally show up on any job site a Contractor is running, including unlicensed jobs. The penalties for poor safety management are crippling to businesses. It is much cheaper to just protect your employees!

Personal Protective Equipment (PPE) is another critical aspect of safety that licensed contractors are required to implement. OSHA regulations dictate that every worker must wear appropriate PPE, including hard hats, steel-toe boots, gloves, and high-visibility clothing, depending on the project’s scope. In addition, demolition sites often involve hazards like dust, flying debris, and harmful chemicals, which necessitate specialized gear such as respirators and protective eyewear. Licensed contractors ensure that all personnel are properly outfitted to handle these conditions, significantly reducing the risk of injuries.

Moreover, licensed demolition contractors are trained to conduct thorough risk assessments before any work begins. These assessments allow them to identify potential dangers, such as structural instability, utility line interference, or hazardous materials like asbestos. Once these risks are identified, contractors take measures such as erecting barriers, using specialized equipment, and implementing controlled demolition techniques to mitigate them. These precautions not only protect workers but also ensure the safety of neighboring properties and the environment.

By hiring a licensed demolition contractor, you are investing in the peace of mind that your project will be carried out safely and professionally. Their adherence to OSHA standards, proper use of PPE, and commitment to comprehensive safety protocols minimize the chances of accidents and delays, ultimately saving you time and money. When safety is non-negotiable, the expertise and accountability of licensed professionals make all the difference.

Licensed Contractors Can Pull Permits

Another important advantage of hiring licensed demolition contractors is their ability to pull the necessary permits for your project. Permits are a legal requirement for most demolition jobs, ensuring that the work complies with local building codes and zoning regulations. Licensed contractors have the credentials and knowledge to navigate this process efficiently, saving you the hassle and potential legal complications of attempting it on your own. Some customers opt to get their own permits, which is totally fine. The benefit to having a contractor pull them is pushing the liability on the company you hired, instead of yourself.

Pulling permits involves submitting detailed plans and documentation to local authorities, demonstrating that the project meets safety and environmental standards. This step is crucial for avoiding fines, work stoppages, or issues with property resale down the line. Licensed contractors understand these requirements and maintain healthy relationships with permitting offices, streamlining the approval process. Their expertise ensures that all paperwork is completed accurately and on time, so your project can proceed without unnecessary delays.

Most if not all California jurisdictions, only licensed professionals are authorized to obtain demolition permits. This restriction protects property owners by ensuring that only qualified contractors—those who are insured, bonded, and experienced—can undertake potentially hazardous demolition work. Unlicensed operators may not have the ability or knowledge to secure permits, which can lead to unsafe practices and costly repercussions.

By entrusting your project to a licensed contractor, you can rest assured that every aspect, including permits, is handled responsibly and in full compliance with the law. This not only keeps your project on track but also protects your investment by ensuring that the work is performed to the highest standards.

Contact us at Demo Patrol today! With our expertise, commitment to safety, and dedicated customer service, we're here to ensure your demolition process is smooth and successful. Don't wait—reach out to us now at 916-409-6879 or fill out the form here to get started on paving the way for your plans!