How to protect myself from liability when hiring

14 years ago

I'm going to be hiring 1 or 2 carpenters (hourly) to help me to some framing high on a ladder.

With the slow construction market these days, there is a lot of cheap help available but many are not licenced, bonded, & insured.

I would appreciate input on my concerns below:

I'm not that worried about them being licensed in the respect that I already know exactly how I want the work done and will be there to see that they do it the way I want.

I'm not that worried about them being bonded because I won't be paying them upfront or leaving them alone in my house where they could rob me.

I'm not that worried about them being insured in the respect that I'm willing to accept the risk that they may damage something on the house, and there is not much that can be damaged.

However, I'm really worried about liability insurance because if they fall off a ladder I don't want them to sue me and take my house.

What is the best way for me to protect myself? Is it enough to know that they have personal medical insurance? (also feel free to refute any of my reasonings).

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Comments (8)

sierraeast
14 years ago
Out here, to hire non-state licensed trades people, you have to provide workmans compensation. It's the law!
brickeyee
14 years ago
Check if your homeowner's policy covers workers comp for trade people working on your house.
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trtsmb
14 years ago
You'll have to check the laws in your state.

Personally, I wouldn't let any contractor in my house who was licensed, bonded and insured.
tryinbrian
14 years ago
You might want to try some legal forum or legal help site. Trouble is, lawyers are smart and don't give away free advice.

At least you have narrowed down your concerns to worker's comp issue. The rule around here (Ohio) is that you don't let workers on your land without them showing you proof of workers comp coverage (e.g. a certficate of coverage that they get back when they pay the premium)
User
14 years ago
Why not talk to your home owners insurance agent?

That would be the first person I look to in a case like this.
macv
14 years ago
If you are hiring someone to work from a ladder you should get a copy of he OSHA residential requirements and follow them. If you don't you may incur unnecessary liability even if the worker is insured.

"Residential construction. Each employee engaged in residential construction activities 6 feet (1.8 m) or more above lower levels shall be protected by guardrail systems, safety net system, or personal fall arrest system unless another provision in paragraph (b) of this section provides for an alternative fall protection measure. Exception: When the employer can demonstrate that it is infeasible or creates a greater hazard to use these systems, the employer shall develop and implement a fall protection plan which meets the requirements of paragraph (k) of 1926.502.
Note: There is a presumption that it is feasible and will not create a greater hazard to implement at least one of the above-listed fall protection systems. Accordingly, the employer has the burden of establishing that it is appropriate to implement a fall protection plan which complies with 1926.502(k) for a particular workplace situation, in lieu of implementing any of those systems."

IMHO it's usually cheaper and certainly safer to hire a general contractor for above grade work if you don't have the experience and/or training needed to do it properly or if you can't afford to miss a few paychecks or if there's not a good trial lawyer in the family.
dave777_2009
14 years ago
Redss -

My brother helps me out once a week, working on a house. I KNOW that if he cuts his hand off, or falls off a ladder - he will NOT sue me. Won't happen. Some of his actions around a saw make me cringe. We've talked about it...

You are proposing to HIRE several people, pay them, and be an employer. This is to save money.

Recently - a Comcast employee working at a Wall-Mart tackled a person who was abducting a little girl. One of the reasons it made the news - is because the 22yr old young man - is in a wheelchair. Paralyzed. He fell off a ladder - hanging Christmas tree lights...

Bottom line: If you like your home, and don't wish it taken from you; your wages garnished for YEARS - you will do one of several things... 1. Do all the work yourself; or have only trusted, true friends help you out. NO pay!

2. Hire a reputable firm, which has required and necessary insurance; or hire an insured contractor - who carries bond, liability, etc; and is responsible for themselves - if they get hurt.

3. If you can't do #1; WAIT till you have the money to do #2.

A neighboer of mine, recently had a man fall over 25' from a tree to the ground. Luckily - the person lived, and they had hired a reputable firm - which carries their own insurance, etc.

Your home insurance will never cover you being an employer, and prevent you from losing your home because of high medical costs...

You ARE putting yourself at extreme liability risk - if you hire some people to do work on your property.

tryinbrian - Lawyers ARE smart - and they DO give away free legal advice all the time. Just depends on your attitude, and how you ask.
brickeyee
14 years ago
"Your home insurance will never cover you being an employer, and prevent you from losing your home because of high medical costs..."

Not necessarily true.

Some homeowner policies even cover workers comp for hired workers.

At the very least it will come down to if the person is an independent agent and responsible for themselves, or an actual employee.

They are very unlikely to meet the employee test.

How to protect myself from liability when hiring

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sierraeast

brickeyee

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