Hiring handymen and liability?

Question

I could save lots of money by hiring handymen on flips. But I'm concerned about liability if someone gets injured. First of all, why am I responsible if a tile guy is negligent and cuts himself? I don't even get that part, but also...

How could someone hurt themselves installing a toilet? I would hire insured contractors for just roofs and electrical. Does this sound like a good plan?

I don't want to get sued, but I also want to turn a profit.

Jason Bott · Answer

@Kyle Doney the handyman would be covered under his employers health plan.

But, in the above scenario we are assuming the handyman does not want to pay anything out of pocket.  And is holding the landlord liable for an unsafe working space.  In that case, the handymans employers insurance would not protect the landlord.

Bob Okenwa · Answer

@Patrick Philip

People will sue you over just about anything these days. If they're in your house working without their own insurance, you're liable for the well-being whether you like it or not. Get liability insurance and you'll be safer in the long run. Why risk a lawsuit worth thousands or tens of thousands for a few insurance dollars with tens if not hundreds of dollars?

If the financial success of your project is predicated by the use or non-use of insurance, it probably isn't a good deal to begin with. A toilet can be dropped on a foot and break bones, people can strain muscles lifting things, etc. Better safe than sorry.

Jason Bott · Answer

@Patrick Philip can you expand on the specific coverage your HML is requiring?  Are they stating you need to carry General Liability?  Or are you stating they require 3rd parties to carry  liability.  They are 2 different policies.

Patrick Philip · Answer

Well I just found out that my HML requires insurance that will cover this. Also, if I choose to not use a HML, I found a company that will write a policy that will cover this.

In addition, I could have everyone on the site sign a liability waiver, if those would even hold up in court.

Carl Lim · Answer

I prefer   using EasyCover, they cover professional indemnity and commercial general liability, its affordable than the other one that I have googled and   has a great services and reliable advice, if you're interested I'll drop the   site: Professional Liability Insurance | EasyCover Canada

Sid Leibowitz · Answer

William. There are many state laws that can vary from state to state. You can never assume anything. You should have an insurance company working for you if you are a business owner or a home owner. Insurance is customizible at a cost. It can be your cost or the handyman's. I have a handyman who has insurance. I have a copy of his insurance. He also uses his son at times. He is insured under his fathers policy. I have insurance also. If he were to get hurt and try and sue me my insurance company would have to negotiate it out. I would not have mush to do with it. I do not know really how it would play out. Perhaps his would pay him or the two would share the expense. I do not think my insurance company would foot the bill for the entire incident. The fact that you have a policy in force is a great defender in the case as you show you show due diligence and made some provision which covers you in a blanket like if the mailman or UPS man slops and falls. Their company is first to pay the claim and then some if any comes from you insurance. You do not look like you did anything wrong by hiring outside labor for minor labor. Like if your landscaper or grass cutter has an accident an gets hurt doing work around the house. It is best though if you make them use their own equipment such as a ladder and not yours. It shows that they have a history of working at this a s a side job. Then the IRS comes in to see if they are paying taxes on income. This increases their liability and exposure and builds a stronger case for you. Hope this helps.

Sid Leibowitz · Answer

Whether you hire a contractor or handyman you have to make sure that they have their own insurance. First rule if construction. Even a good handyman has insurance and supplies you with a certificate if you ask and you should.  It is not uncommon for them to insure themselves. There are some that work off the books and some that are professional fall guys and come in to case the joint for a later break in. Insurance is not where you want to save a few dollars when a man can fall or pull his back out moving a toilet and is disabled. They could sue for permanent injuries. Perhaps not win however; can cost you to defend yourself anyway or settle out of court.  Does your homeowner policy provide for contractors working in and around your house? I always ask the qualifying question a reputable handyman will be insured. I also have insurance for workman in my home in addition.

Hiring handymen and liability?

Most Popular Reply