Third Party Liability – So you have a contractor coming to your home, what’s your liability?

There are a million reasons why a contractor could be coming to your home. You’re renovating the kitchen, getting plumbing work done, having a new roof put on, tending to your landscaping, having the basement cleared out after a heavy rain, or any other home project.

First off, good for you for working to make your house a home that is not only safe, but beautiful! However, you need to take into consideration the liability that could come your way should something happen to one of the contractors on your property. 

Something to keep in mind is that if you are going through an established business, their employer will most likely have coverage for the contractors coming to your home, but never assume this. Always get a confirmation, preferably in writing, from this employer that they have covered their employees under their business.

Now, if you’re having an independent contractor come to your home, you need to request a certificate of insurance. It will be delivered by a third party agent, in your name, and certifies that the individual you have hired is insured for the day/duration of the project. This places any injury, damage, or liability on their workers comp. 

Another route would be the “one man show”, i.e. the landscaper who has a small side business in the summer. This is when you are going to look into third party liability. You need to get a “hold harmless agreement” – you’ll both sign the agreement, which acts as a waiver of liability; so if they get hurt, they won’t be able to sue you because they gave that right up.

If all else fails, homeowners insurance will cover you if a contractor chooses to sue you for “creating a negligent experience”, but you’ll need to be sure you have your homeowners insurance! Keep in mind, you can’t “simply” be sued if someone gets hurt on your property, because we all have a duty to go through life with responsibility. However, if you’re proven to have created a negligent environment, or actively do something to create that environment, then you open yourself up to this. I.E. failing to salt your walkways and someone slips and falls.

We hope this helps clear up any questions you may have had regarding hiring an independent contractor, and that you can swiftly and safely get to creating the home of your dreams!

Article written by contract writer and digital media coordinator: Candace Cox. You can reach her at socials@howardwebbins.com or candacecox96@gmail.com.

Candace Cox

Contract Writer &

Digital Media Coordinator