Hiring the Uninsured

Q:  My friend told me that if I hire somebody to do work around my home and that if he gets hurt or my property is damaged that I may be responsible for any costs. Is this true?

A:  In short, this is true.  Hiring an independent operator or company with general liability and workers compensation insurance is ALWAYS the best practice.  If your home is accidentally flooded or otherwise damaged, you want their insurance to cover repairs.  Similarly, if they are hurt, you want their insurance to cover the medical care and lost wages.

If they do not have any insurance, these costs may be your responsibility.  Also, many homeowner’s insurance policies will not cover damage caused by 3rd parties that you bring into your home.  Policies assume your service providers are insured, and exclude this coverage.  Trying to save a few dollars can really cost you.