Why Properly Licensed and Insured Subcontractors Can Save Your Project
- stuartwfort
- Jul 11
- 2 min read
Flipping a house in Florida? You're probably laser-focused on budgets, timelines, and resale values. But there's one detail too many investors overlook: making sure every subcontractor on your job site is properly insured.
Skipping this step can cost you way more than you think. Here's why it matters and how to protect your investment.
The Real Risk of Uninsured Subcontractors
Imagine this: a roofer falls off the ladder and ends up in the hospital. If that roofer doesn't carry workers' comp or liability insurance, the general contractor might be liable. And if you hired that GC, the responsibility could fall on you.
It doesn’t stop at injuries:
Damage to a neighbor’s property
Faulty electrical or plumbing work
Subcontractors suing you if they aren’t paid by your GC
All of these are real risks. And they’re amplified when you're flipping in a high-liability state like Florida, where storms and structural codes add layers of complexity.
What Insurance Should Subcontractors Have?
At minimum, make sure every subcontractor carries:
General Liability Insurance: Covers property damage and bodily injury.
Workers' Compensation Insurance: Covers employee injuries on the job.
Auto Insurance: If they’re driving materials or tools to your site.
Ask for their Certificate of Insurance (COI) before they start work. Don’t just take their word for it.
Why This Matters for Your Financing
If you're using a private loan from Alvear Lending to finance your fix-and-flip in Florida, we want to see your project succeed—and that means risk management matters.
Lenders look for signs that your deal is structured smartly. That includes:
Licensed and insured contractors
Clear scopes of work
Project timelines that reflect real-world risks
Insured subs tell us you’re serious. They protect your budget and keep the timeline on track.
Red Flags to Watch For
"Cash-only" subs who can’t produce a COI
High turnover on your crew (often a sign of cut corners)
Pressure to skip permits or inspections
A cheap sub might seem like a win—until something goes wrong. Then you’re left holding the bag.
Bottom Line
Your flip is a business. Treat it like one. Hiring subcontractors with the right insurance is a small step that can save you from massive headaches down the road.
Need help financing your next Florida flip? Alvear Lending offers fix-and-flip loans tailored for real estate investors who want to move fast and build smart.
Book a call today to get pre-approved and talk through your next deal.
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