In business, employers should ALWAYS request proof of insurance when hiring a subcontractor, which (at a minimum) should include worker’s compensation as well as liability coverage. This step is typically taken because there are direct financial implications at the end of the year dealing with your workers compensation audit. At Deland, Gibson, we suggest you use the same process at home.
When hiring a contractor to perform work around your house, always ask for proof of insurance. A contractor ought to have insurance that contains both liability coverage and worker’s compensation.
You may feel confident that your contractor’s insurance will cover most everything; however, if your contractor is underinsured, you may have to supplement the cost should his mistake be more than his insurance will cover.
What about this scenario: A landscaper’s lawnmower kicks up a rock into your 6 year old neighbor’s eye badly injuring the young boy – if the landscaper is without large limits you and your personal policy will now pick up the costs. This means time off work, added stress, and possible financial loss. This doesn’t even begin to address some of the new issues the child will have to deal with. (Again, these are things that you ultimately may pick up the tab for)
For more information how to transfer these risks and to make sure you have sufficient limits for you and your family, contact Deland, Gibson at 781.237.1515.