Guest Worker coverage

[Victor Newman]

What is the name of your state (only U.S. law)? Oregon

Am going to hire a handyman for help around the house. Was looking at our H/O policy and nothing specific mentioned about guest workers. Contacted our agent and he said this is not specifically covered. He referred me to Coverage E, Personal Liability, $500K limit.

He said there is an "unspoken agreement" that we are covered for a worker's injury...unless it is truly my fault that worker was injured. (i.e., I give him a 200 year old wood ladder to clean gutters and he falls to the ground....as opposed to a newer, aluminum or fiberglass ladder in good shape). This would be an unlicensed worker, not bonded, not a family member, probably will not have W/C or medical insurance.

There are 8 pages of wording and terms. Can I get an overview of this situation, please.

Thank you.....

 

[STEPHAN]

What is he supposed to do?

 

[PayrollHRGuy]

First off there are no "Unspoken Agreements" in insurance policies. The personal liability is exactly that, coverage should you get sued.

$500K might protect you enough unless there is verbiage in the policy that specifically excludes those contracted to do work for you.

 

[adjusterjack]

He said there is an "unspoken agreement" that we are covered for a worker's injury.

Your agent is an idiot. There are no "unspoken agreements" in any insurance policy.

.unless it is truly my fault that worker was injured. (i.e., I give him a 200 year old wood ladder to clean gutters and he falls to the ground....as opposed to a newer, aluminum or fiberglass ladder in good shape).

First of all, letting him use a 200 year old ladder is not, in itself, negligence. That's an extreme example. You would have to have knowledge of a defect in the ladder to be negligent and if you had knowledge and let him use it anyway, you would be stupid to do so as your policy would be non-renewed after a claim like that and you would end up a high risk insured and pay double or triple for a homeowners policy.

If your handyman was injured on your property and claimed that you were negligent, even that doesn't mean that your policy automatically pays. Your insurance company has the option of defending you if there was any doubt.

So, for the Personal Liability coverage to pay, the injured person would have to prove negligence. If that person were successful and your insurance company paid out a large sum of money your policy would likely be non-renewed because you were hiring unlicensed, uninsured handymen.

That brings us to the Medical Payments coverage which would cover an injury to a handyman without regard to fault. But that coverage usually has very low limits (1000 or 5000 or 10000) and doesn't go very far for a serious injury.

Besides, are you that cavalier about your homeowners insurance where you want it to pay out those kinds of claims on your behalf so you can save a few bucks hiring an unlicensed, uninsured handyman and end in the high risk insurance market?

People post here every day squealing like stuck pigs when their rates go up or they want to pay claims out of their own pockets just to avoid an increase in insurance premiums.

 

[Victor Newman]

Stephan......light carpentry, irrigation help, gutter cleaning, leaf raking/hauling, pole saw to lift up tree branches to 8' off the ground, spray poison oak.....etc. Pay is $15-$20 hour.