Remodeling or having work done on your home can be tricky business. It can also be expensive if accidents happen to workers inside your home or property – and from time to time, accidents do happen!
If accidents happen to the people you have hired to do work on your home or property you could be held financially responsible. You should understand what type of coverage the company that you’ve hired as, as well as what type of additional coverage might be ideal for you to consider. If you have doubts about your coverage, it is always best to speak with a trusted insurance agent on the matter.
The Insurance Information Institute offers a wealth of knowledge on this topic. Check out their original post for more details and helpful links.
But if you are wanting just a brief overview…here is what you need to know!
Company Contract Workers
In-home care workers examples: nurse, physical therapist, cook or housekeeper
- Determine who is the employer: in most cases the worker you hired is an employee of that business and insured under their auspices. If you find you are considered the employer…contact your insurance agent for advice.
- Get a copy of the businesses certificates of insurance: these will provide documentation that the firm covers a worker’s compensation. If the company offers health and disability insurance, it is safe to say you can feel comfortable that any worker injured on your property will receive medical treatment at the company’s expense and not any of your own.
Occasionally in-home hire examples: babysitter, yard worker, small home improvement projects.
- Check your policies: review your current no-fault medical coverage in your homeowners policy or renters insurance. If someone other than an immediate family member is injured on your property, you can submit their medical bills directly to your insurance company for reimbursement. Make sure your policy limits are adequate to your needs.
- Know your liability insurance: depending on your current homeowners and renters coverage and your assets, you may elect to raise the amount or buy more coverage through an umbrella liability policy.
Permanent Full- or Part-Time Employees
- If you hire one or more home workers on a permanent, regularly scheduled basis, consider purchasing workers compensation insurance. Workers comp provides coverage for medical care and physical rehabilitation for an employee who is injured on the job, as well as lost wages if the employee is severely hurt and no longer able to work. In the worst-case scenario, it also provides death benefits.
- Find out if your state requires workers compensation for the type of employees you’re hiring (ex. housekeeper, gardener, etc.).
- Determine the mandatory requirements workers comp coverage.
- Don’t ignore the law. It’s important to note that if you’re required by law to buy workers compensation insurance and you fail to do so, your homeowners or other applicable policies will not pay for any fines, court awards or any other penalties against you.
If your employee is going to drive your car
Whatever the nature of the employee relationship, it’s important to inform your auto insurance company if the person you hire is going to drive your car. For example, if you’re going to lend your car to a worker to pick up groceries or take an aging parent to the doctor, your insurer needs to know about the additional driver for auto insurance purposes. Whatever the employee car usage, your insurer can explain your options.