Dodging home construction and repair work liability

If you hire a contractor to perform work on your home, there is no need for you to purchase a workers’ compensation policy to protect the contractor’s employees. However, in order to obtain a building permit, the contractor will need to show proof that his or her employees are covered. These covered employees receive benefits regardless of whether the employer is at fault in causing the injury, and cannot sue the employer if determined to be at fault for the injury.

Suppose you or a family member is negligent in injuring one of the contractor’s employees (e.g., bumping into a ladder the employee is standing on). Since you are not the employer, you or a family member could be sued by the injured employee. Fortunately, the liability coverage of your homeowners policy will defend and pay any damages awarded up to your policy limit.

Certain sections of the Labor Law impose strict liability (i.e., negligence is not required) upon property owners and general contractors for workers injured under certain conditions (e.g., a fall from a height). Fortunately, the law exempts “owners of one- and two-family dwellings who contract for, but do not direct or control the work.” So, if you want to avoid this strict liability, you will want to leave control of the work in the hands of a capable contractor.

Before you start any construction project in or around your home, give our agency a call. We can discuss it with you and make sure you have the insurance coverages you need.