Homeowner Liability and Personal Injury of a Contracted Worker

Homeowner liability insurance protects homeowners in the event that a contractor accidentally damages your home or the contractor injures someone while they are working on your home. When you hire someone to work on or around your home, it is fairly common for contractors to carry their own liability insurance, usually in the amount of $1 million or more. 

Who Is Liable for Injuries?

When a homeowner purchases liability insurance, part of the insurance company’s obligation is to provide a defense in the event of a lawsuit. Most all homeowner liability insurance provides workers’ compensation coverage. Independent contractors must have their own workers’ compensation insurance. The only way to determine if the contractor you are planning to hire has insurance is to request that the contractor’s insurance company send you a copy of their insurance certificate. If they subcontract work, make sure the policy covers subcontractors as well.

Many business owners run their business from their home. Very often, this involves the owner hiring employees to help with the business. If an employer employee relationship can be established, the injured person would be covered under the homeowner liability insurance. Worker’s compensation insurance is designed to compensate an injured worker or contractor in the event of a job-related accident. Since many contractors and company employees are injured on the job each year, workers’ compensation insurance is quite expensive.

Many homeowners try to save money by hiring unlicensed contractors.  In most states, hiring an unlicensed contractor is illegal. In some states, homeowners will be held liable for any injury that occurs on the property, even if the homeowner was not aware that the contractor was unlicensed. 

Tort Claims

All companies and individuals hired to complete work at or in the home should carry both liability and workers’ compensation insurance. Some homeowners regularly lend tools to contractors and help them with the work without fully understanding the tort liability consequences of their actions. To limit homeowner liability, they should always warn workers about any known hazards, never lend tools to workers, and never help workers. 

In addition to a workers’ compensation claim, an injured worker may be able to make a tort claim against the homeowner. While a workers’ compensation claim is limited to hospital bills, wages, and disability, a tort claim has no limitation. Tort claims result from either active or passive negligence on the part of the homeowner. Active negligence results when the homeowner does something that contributes to the accident, such as holding the ladder or lending the worker a tool. If the tool injures the worker or the ladder falls, a tort claim may exist. Passive negligence results when the homeowner fails to do something, such as warning the worker of a known danger; like a hole in the yard. If the worker gets hurt falling into the hole, the worker may be able to make a tort claim against the homeowner.

How a Lawyer Can Help

If you are a homeowner facing litigation resulting from an injured contractor or employee, you should contact a personal injury attorney. Their expertise in this area of law may be able to protect you against liability.

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