Is it really that important to hire contractors that are insured?

[Rob C.]

From what I've read in the forums it seems that conventional wisdom here is it's best to hire only contractors & handymen that are insured. I adopted this perspective when I started as a landlord as I tend to trust the biggerpockets community at large. Now though I'm starting to question that perspective. Many of the arguments for hiring insured contractors suggest that you'll want to place a claim on their insurance rather than yours when something happens (e.g. they get injured on your property). However, isn't that part of the reason I'm paying my insurance premiums- to protect me in an unexpected event? I understand not wanting to place a claim on your own insurance and risk higher premiums, but is it really worth paying extra for an insured handyman each time just to prevent that rare situation? It seems equivalent to paying for rental car insurance even though your auto insurance will offer coverage if you get in a collision. I'm interested to hear what others here think about this counter perspective. I'm still trying to make up my mind on this matter, and feedback always helps. For what it's worth, I'm thinking about all this with regard to miscellaneous maintenance & small jobs on a rental property rather than a full rehab. Although I'm not sure that should even make a difference- does it?

[Jon Kelly]

@Rob C. I've thought the same thing. A few comments might be helpful: 

1. In my opinion, it's not necessary for smaller, "low risk", jobs. But, you would want a contractor insured for larger, "high-risk" jobs.

2. Some jurisdictions require the contractor be insured. I'm currently completing a building permit and the Borough/County requires a minimum insurance coverage on the contractor 

3. In my experience (I understand this doesn't apply to all contractors), insured contractors are more expensive but also more professional than contractors w/o insurance. You can cut costs with a low budget contractor, but you get what you pay for