Imagine hiring a plumber to come to your home. That person stumbles and falls. Or, they causes a pipe to burst, spraying water throughout the home. When situations like this occur, your home insurance may be there to help you recover from the loss. What happens next?
When The Contractor Has Insurance
When vetting any contractor for your home, determine if they have a valid license and insurance protection. An insured contractor is one with their own policy to cover most types of incidents that occur to them.
If you are working with a single professional, be sure that individual has business insurance, including liability coverage. If they are an employer, it is important to be sure the company has a policy to cover the person who comes to your home. The employer also need to have workers compensation coverage. This protects workers.
When the company has insurance, that insurance covers losses:
- Workers Compensation Insurancecovers the losses associated with the worker's injury. This may include losses such as injuries, lost time at work, and pain and suffering.
- Liability Coverage might cover the damage to your home that the company causes. If the policy has property damage coverage, the policy can often assist.
Be sure to see documentation of the company's valid insurance plan. You can always verify the coverage by calling the company's insurance provider directly.
When The Plumber Does Not Have Coverage
Believe it or not, you may still be responsible for the individual's losses in this case. Your home insurance policy provides liability coverage for individuals injured on your property. If that plumber suffers a broken bone, for example, your insurance may cover the losses from the incident. This usually includes coverage for the single plumber as well as any employees.
The damage to your home also has some coverage. Typically, your policy will pay for the repairs necessary on your home if a contractor causes them. For example, if poor workmanship causes you to suffer financial loss, the policy may offer some coverage. This helps you to get the repairs underway.
Yet, your insurance carrier may decide to take legal action to force the plumber to pay for your losses. This would help the carrier to prevent losses. In such a case, the contractor's liability coverage might pay for the damage.
The best option is to do a good job of vetting those you work with before you bring them into your home. Verifying insurance protection is important. If possible, you do not want your home insurance to have to cover such losses — as it can drive up your costs in the long term