If you’re making an addition to your home, making repairs, or having any other work done on your home by outside, hired contractors, one thing that’s missing from your standard homeowners policy is worker compensation. Most larger contractors have workers’ compensation insurance for their employees, but if you hire a smaller company or even an individual handyman to do some work on your home and they don’t have it, you could be held liable if someone is injured while working on it. your house.
There is additional coverage you can purchase if the employees you hire are uninsured. It’s called conditional workers’ compensation. If you carry this homeowners coverage option, you won’t be held liable if an uninsured worker is injured while working on your property. Instead, the insurance company covers the medical expenses and lost wages faced by the employee. If you don’t have the coverage, you’re legally responsible to pay anything that a workers’ compensation insurer would cover.
So, who should buy this additional policy? Anyone who has a fair amount of money and/or value in their home and hires uninsured workers to work on their property. If you are in a bad financial situation, this coverage may not be necessary because you can only be sued for what you can afford. Of course, this is open to all sorts of interpretations, so if in doubt, buy the cover. It’s not that expensive and it can save you tons if something were to happen.