Did you know

When someone comes to your house to cut the grass, clean your windows, or build a deck, they may or may not have insurance. One type of insurance they need is liability insurance. This type of insurance will cover them if they cut your grass and the lawnmower blows a rock and breaks your window. Your window will be replaced using their liability insurance.The other type of insurance is workman’s compensation insurance. This insurance covers them if they fall off the lawnmower and hurt themselves.

It is imperative that you check to see if they have both kinds insurance. There are a lot of people that work here and don’t have insurance. Ok,what is the big deal if they don’t have liability insurance or workman’s compensation.

Do you know that if these people do not have workman’s compensation that they can come after you if they are injured on the job. The job happens to be on your property.You can be held responsible. Sometimes they will even say, “Oh, I will just sign a waiver.” I am not an attorney or an insurance agent BUT my understanding is that this form does not eliminate the possibility that they can come after the owner.

Over the past several years talking to multiple insurance agents in the area, it is my understanding if someone comes on to your property and they get injured they can come after you for compensation.

When a property management company has a lawn guy, window washer or carpenter come work on your house, you, the owner is hiring this person. The property management company is not hiring these people. The property management company is hiring on behalf of the owner.

So how does the owner and/or property manager protect themselves when hiring people who do not have insurance?

The most common way is to just not worry about it. If they get hurt then worry about it when it happens. This is probably not the smartest way to handle it but it is the most common.

The second way to handle it, is to not hire anyone that does not have insurance. This is particular difficult to do, since may people do not have insurance.

The third, and for me the most successful, is to form a Maintenance company that covers all workers that do NOT have insurance. It is expensive but well worth the risk.

A couple of years ago, a work order was issued to remove a sign from a building The worker went out to remove the sign and fell from the ladder. $25,000 later he was back at work. If there had not been workman’s compensation insurance, the owner would have been at risk. I am not willing to take that risk. Are you?