Personal Financial Tip Vol. 10 - Home employees

Let's assume you need a roof replaced. You talk to a few companies and pick one.

The roofers start the job and one accidentally falls off of your roof and is seriously injured. Who is responsible for his injuries and his care; you or the contractor?

Typically, the employer would be responsible for all expenses related to the employee's injuries and lost wages for the period of time he was off. These expenses are normally covered by workers compensation.

However, let's assume that the contractor had no worker's compensation. In this case, the home owner may be responsible for all expenses related to the injury. This could be covered by your homeowner's policy, but not always.

Whenever someone does work on your property ask them for a copy of a current worker's comp certificate. If they tell you they are fully insured, that does not relieve you of any potential liability.

Having a current copy of a worker's comp certificate, shows that you have done the due diligence necessary to relieve your self of liability.

Getting a copy of the worker's comp certificate will also tell you something about the reputation of the company you are dealing with. A company operating without worker's comp coverage is also the kind of company that would do shoddy work on your job to cut costs.