Homeowners Insurance Exemptions – Workers’ Compensation

If you’re adding to your home, making repairs, or outsourcing any work to your home, one thing that’s missing from your standard homeowners policy is workers’ compensation. Most major contractors carry workers’ compensation insurance for their employees, but if you hire a smaller company or even an individual repairman to do some work on your home and they don’t carry it, you could be held liable if someone is injured while working on your home.

There is additional coverage you can purchase if the workers you hire are uninsured. This is called contingent workers compensation. If you have this homeowners coverage option, you cannot be held liable if an uninsured worker is injured while working on your property. Instead, the insurance company will cover the worker’s medical expenses and loss of wages. If you don’t have coverage, you are legally liable to pay whatever a workers’ compensation insurance provider will cover.

So, who should buy this additional policy? Anyone who has a reasonable amount of money and/or value at home and hires uninsured workers to work on their property. This cover may not be necessary if you are in bad financial standing because you can only sue for what you can afford. This is of course open to all kinds of interpretations, so if in doubt, buy the scope. It’s not that expensive and could save you tons if anything.

About Lily Hammond

I have been working as an insurance consultant in my own insurance agency since 1998. Because I've been doing this for so long, I know every detail and I'm here to help you. You can find my e-mail address and work phone on the contact page.

Leave a Reply

Your email address will not be published. Required fields are marked *