Q: When hiring a contractor, how can I avoid getting nailed with legal liabilities?

A: Even though hiring a contractor is considered to be a time and money saving process, it is important to realize that certain risks come along with doing this. Here are some tips that will make sure that you won't get stuck with legal liabilities:

• Be sure that the contractor has workers' compensation insurance because if he doesn't have that, you might get sued when one of the workers get hurt.

• Make sure that all of the contractor's employees are covered, even those that will work there part time.

• During the pre-hiring phase, be sure that this contractor is completely legal and has the necessary paperwork.

• Check the contractor's and subcontractor's policy numbers in order to check if they are still in effect.

• Check if the contractor has an established presence in the community.

• It is highly crucial that the contractor obtains a permanent mailing address and phone number along with verifiable references.

• Check the contractor's and subcontractor's credentials.

• Be sure that you do all of your research before hiring a contractor

• Make sure that he is legal

• Ask for previous experience

• See if the contractor has an independent license or whether he is bonded with a company

• Ask about his previous jobs and perhaps even the previous people he worked for

• If the contractor hesitates to give any of the information that you ask for or says that he doesn't have it, you might want to look for another contractor

• Keep in mind that hiring the wrong contractor could mean serious damage to your house and serious spending