Have you decided to act as your own general contractor while building a new home? If so, there is one important question you need to answer—do you have adequate liability protection?
If a subcontractor you hire is injured on the job, you could be held responsible for their injuries. To avoid an expensive out-of-pocket payment, you need to make sure you have adequate coverage in place. Here are some additional things to keep in mind when acting as your own general contractor:
- Don’t count on your homeowners policy to provide adequate protection for contractor risks. It may not cover high-cost medical bills or injury claims involving subcontractors.
- Review what forms of coverage are required in your state. Many states require that you carry workers’ compensation insurance for subcontractors.
- Be selective when choosing subcontractors. Ask for references to ensure they work safely and professionally.
- Ask if subcontractors carry their own insurance. This can reduce your liability and provide an added layer of protection.
- Don’t leave anything to chance—consult your insurance agent for personalized coverage guidance before you begin construction.
Check Your Workers’ Compensation Requirements
While some states allow exceptions for owner-builders, most require workers’ compensation insurance to cover injured subcontractors. Even if it’s not legally required, consider investing in this coverage to protect yourself from costly medical claims.
For more personal risk management guidance and homeowners insurance solutions, contact us today.
This article is for informational purposes only and is not intended as professional advice. © 2011, 2013, 2016, 2021 Zywave, Inc. All rights reserved.