Unless you are very handy, most homeowners hire outside help to fix their homes, ranging anywhere from fixing the plumbing to remodeling a kitchen. Whether the contractor or subcontractor you hired was a referral or found in the paper, most people don’t ask themselves whether the people they hired have worker’s compensation insurance or not. What would happen if the contractor you hired for the job had no worker’s compensation policy and one of their employees was injured on the job at your house? Typically any homeowner’s policy will not have a worker’s compensation coverage to insure these types of accidents.
According to The National Underwriter Company, “A person who fails to check the insurance protection of contractors is gambling for high stakes.” This is especially true for homeowners since the homeowner’s forms do not apply to bodily injury to any person eligible to receive the benefits required to be provided by the insured under any workers compensation law. Therefore, the homeowner is not going to be able to rely on his homeowners policy to pay any required benefits he must pay to an injured worker based on the homeowner’s position as principal.”
So, what are a homeowner’s options for protection when they hire a contractor? You can either self-insure or purchase a worker’s compensation policy. Unfortunately the self-insurance policy option is pricey, especially if the injury is serious or permanent. The worker’s compensation policy is more affordable, but you can run into issues with state regulations. Your best bet in being protected is to make sure the contractor you hire carries proper and sufficient workers compensation insurance.
Whether you want to buy a short term worker’s compensation policy for work on your house or just make sure the people you hire have coverage, our agents at Buttrey-Wulff-Mamminga insurance agency can help you with any concerns regarding worker’s compensation liability protection. Repair work on homes can be dangerous, which makes it even more important to have the right coverage in place. Contact our specialized agents today to make sure you are protected from expensive worker’s compensation claims.