Money & the Law: Workers’ comp likely not issue in hiring handyman [Gazette, The (CO)]
By Jim Flynn; SPECIAL TO THE GAZETTE | |
Proquest LLC |
I recently received my homeowners insurance renewal package. Included was an ominous-sounding "workers' compensation notice" telling me that, in some states, "household workers, gardeners and even baby-sitters" are considered employees entitled to workers' compensation benefits. This means their employer - the homeowner - must carry workers' compensation insurance or be at risk of having uninsured liability for employee injuries.
The notice went on to tell me that my insurance company doesn't write workers' compensation insurance in
To back up, and as a quick introduction to a complex subject, workers' compensation statutes create a no-fault system for workplace injuries. The system was invented by employers (who now regularly complain about it) as an alternative to the law of negligence, where recovery for injuries requires proof of unreasonable conduct - fault - and where jury awards can be astronomical. Under workers' compensation statutes, amounts paid out for workplace injuries are strictly controlled. And taking fault out of the equation substantially reduces the cost of claims resolution.
So what happens in
What does this mean, you ask? Unless you have other employees entitled to workers' compensation benefits, have a regularly employed (40 hours or five days a week) household assistant or you're in the same kind of business as your domestic helper, your homeowners liability insurance will come to your rescue if there's an injury and you don't need workers' compensation coverage.
If you're in doubt about your need for workers' compensation coverage, you should contact your insurance company or broker to discuss the issue further.
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Copyright: | (c) 2012 ProQuest Information and Learning Company; All Rights Reserved. |
Wordcount: | 438 |
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