Insurance - casual/occasional labor

[Payman A.]

Hi all, here is another one I'm hoping to get thoughts on.  My properties are not local and in different states so despite contracts, addendums, & requirements there is no way for me to be 100% sure that either managements or tenants will never use an unlicensed/uninsured handyman for some small job that does not require my authorization.  My concern is if one of these handymen was ever injured resulting in a workers comp scenario exposing me to that liability.  I've already asked all my insurance brokers and none of my dwelling/fire policies cover this or offer an applicable endorsement and umbrellas only extend what existing policies cover.  I have conventional home loans on the properties so LLCs are not an option either.  Does anyone know of a way to avoid this exposure?  Thanks for reading, Payman

[Jason Bott]

@Payman A. 3 steps to control the risk.

1)  Require all work to be funneled through your Property Manager.

2)  Confirm your PM has a work comp policy.  If your Property Manager is doing the hiring, their work comp policy will go over any uninsured vendors.

3)  Have your PM send you proof of their work comp policy, and add you as an Additional Insured.  When being added as an Additional Insured, you will be notified when the policy cancels or does not renew.

Unfortunately, if people other than your PM are hiring day labor/handymen, I don't see how your control the risk.  Maybe there are some other creative ways the BP community has to offer.