At its heart, independent contractor liability is grounded in basic tort (fault) liability principles. The most basic liability principle is that if you are at fault in damaging another’s property or causing another to incur costs (e.g. repair costs), you are liable (or financially responsible) for that damage or cost.

What if an independent contractor gets hurt on the job?

An injured independent contractor may file a lawsuit to recover damages by filing a civil lawsuit claiming that the employer is responsible through negligence or some failure to follow safety obligations, which led to the injury. That doesn’t mean they have a case, but it will be costly and time consuming to fight.

What are three things that are not covered by a typical homeowners insurance policy?

Natural disasters, like floods and earthquakes, may not be covered by standard insurance policies. Sewer backups, canine attacks, and loss of expensive valuables are other situations that may not be covered. Adding endorsements or acquiring a separate, specialized policy can provide coverage for each of these events.

Can a homeowners insurance policy protect an unlicensed contractor?

Most homeowners insurance policies specifically exclude damages arising from the work of unlicensed contractors, so they will not protect you. You may be able to isolate investment properties from your own personal holdings via the skillful use of entities.

Can a homeowners insurance company deny a claim from a contractor?

If your homeowners’ insurance company denies your claim, you may be able to recoup damage from the contractor’s liability insurance. Contractor liability insurance is designed to pay for accidents, damages, and injuries resulting from a contractor’s errors.

Do you need homeowners insurance to hire a contractor?

It is very, very important to familiarize yourself with your homeowners’ insurance policy before hiring a contractor to perform any work on your home. This is because many homeowners’ policies do cover damages during a home remodel, but don’t cover damages that result from an addition or an individual project.

What happens if an uninsured contractor is injured on my property?

If an uninsured contractor gets hurt at your home, the financial repercussions could be devastating. Fortunately, there are steps you can take to protect yourself before hiring someone to build or renovate a property. They include: Confirming proof of coverage for any and all subcontractors.