Guides
Injured contractors and workers at your home
If a roofer, plumber or helper is hurt at your house, the contractor's workers' compensation usually pays. Your homeowners liability matters when it does not.
When a licensed contractor's employee falls off your roof or cuts a hand on a saw, that worker's own employer and its workers' compensation policy are normally the first and main source of payment. Your homeowners policy sits behind that, as the backstop for claims workers' comp does not reach: the uninsured handyman, the neighbor's teenager you paid to help, the subcontractor whose own insurer denies the claim. The gap between those two situations is where homeowners get hurt financially, so it is worth sorting out before the work starts, not after the ambulance.
The policy language here comes from the ISO HO-3, form HO 00 03 05 11. Newer editions and your insurer's own form may differ, and your state's amendatory endorsements control, so check your declarations page and policy.
Why a hired worker is a different kind of injury
A guest who trips on your steps brings a premises liability claim. A worker injured on the job sits in a different legal system. In most states, workers' compensation is a no-fault arrangement: the employer's policy pays medical bills and part of lost wages whatever the cause, and in exchange the employee generally cannot sue that employer. Each state runs its own program, with its own rules on who must carry coverage, so the details vary.
Two things follow for you as the homeowner.
- The contractor, not you, is the employer. When you hire a roofing company, its crew are the company's employees. Its workers' comp policy is supposed to respond to their injuries, and you are a customer, not an employer.
- You can still be sued. An injured worker who collects comp from the contractor may, in many states, also bring a negligence claim against a third party such as the property owner. Whether that works depends on state law and the facts: whether you controlled the work, created a hazard you knew about, or failed to warn of one the contractor could not have been expected to spot. Some states shield homeowners more than others, and the shield is usually weaker for an owner who directs the work or acts as general contractor.
For the guest side of premises liability, see slip and fall on your property: how liability works. This guide is about the worker.
What your homeowners policy does and does not do
Coverage E, personal liability, pays damages you are legally obligated to pay because of bodily injury caused by an occurrence, and the insurer defends you even if the suit is groundless. A contractor's employee suing you over a hazard on your property is an ordinary Coverage E claim in principle. The limits on that rule come from the exclusions.
| Situation | Typical result under the ISO HO-3 | Why |
|---|---|---|
| Contractor's employee sues you over a dangerous condition at your home | Coverage E defends and may pay | Ordinary bodily injury claim from your premises |
| Injured person is eligible for benefits you provide or are required to provide under a workers' compensation law | Coverage E excludes it | Exclusion F.4 |
| Your own housekeeper, nanny or gardener is hurt at work | Depends on wording and state law | Residence employee provisions; see household employees and workers' comp |
| You act as your own general contractor and a worker is hurt | Coverage may be disputed, and comp may be your obligation | State law may treat you as the employer |
| Worker is hurt on a rented or business part of the property | May fall outside the policy | Not an insured location, or business activity; see running a business from home: the insurance gaps |
| Medical payments (Coverage F) for a worker eligible for comp | Excluded | Exclusion G.2 |
The core of the ISO form is simple. Coverage E does not apply to bodily injury to any person eligible to receive benefits "voluntarily provided or required to be provided by an insured" under a workers' compensation, non-occupational disability or occupational disease law. Coverage F carries a similar exclusion for anyone eligible for such benefits. These exclusions are written around you being the one who owes the benefits. When the contractor owes them, the exclusion does not reach you, and the worker's negligence claim against you is a normal liability claim. When state law treats you as the employer, the exclusion cuts the other way, and you may have a claim that neither your homeowners policy nor any comp policy pays. Liability exclusions: what Coverage E won't pay lists the rest of the exclusions.
Where it goes wrong
The uninsured contractor. Some small operators carry no comp policy, either because they are sole proprietors, because their state does not require it at their size, or because they let it lapse. If that person is hurt on your property, no employer's policy answers, and the injured person's lawyer looks for another defendant. The homeowner is the obvious one, and your homeowners policy responds if no exclusion applies.
The informal helper. A neighbor's son you pay $20 an hour to haul debris, or a friend who cuts your tree for cash, may not be covered by anyone's comp policy. In some states the arrangement counts as employment, and you may owe coverage you never bought. See household employees and workers' comp.
Owner-builders. If you act as your own general contractor, many states treat you as the responsible employer for the people you bring onto the job. A notice from the California Contractors State License Board warns owner-builders that if a worker is injured on the property, "you could be asked to pay for injuries and rehabilitation through your homeowner's insurance policy" (CSLB owner-builder notice). That is California's wording about California rules, and other states differ. builder's risk insurance for a home under construction covers the property side of a build.
Contract promises. Contractor agreements sometimes contain clauses shifting liability to the owner. The ISO form's contractual liability exclusion has an exception for written contracts that directly relate to the ownership, maintenance or use of an insured location, but read anything you sign. A clause making you responsible for the contractor's own negligence deserves a lawyer's look.
Hazards you created or knew about. Removing a railing before a project, leaving a ladder base on soft ground, running a power cord across the work path, or knowing about rotten roof decking and saying nothing are the facts that move a claim from the contractor's problem to yours.
Before the work starts
- Ask for a certificate of insurance showing general liability and workers' compensation, sent by the contractor's agent or insurer. A certificate is a snapshot, not a guarantee, so confirm current dates and call the agent on a large job.
- Check the license with your state's contractor licensing board, and find out whether comp is required for that license class.
- Ask who will be on site. Subcontractors and day laborers are the weak link. Require the contractor to cover them or to give you their certificates.
- Put it in the contract: comp and liability coverage in force for the entire job, the contractor responsible for its workers' safety, and notice to you of any lapse.
- Do not direct how the work is done. Telling a crew which ladder to use or how to rig a roof drifts toward the employer role. Describe the result you want and let the professional manage the method.
- Fix or disclose known hazards in writing: a soft roof deck, a loose stair, exposed wiring.
- Tell your insurer about a large renovation, and revisit your liability limit using how much liability coverage should a homeowner carry?. choosing a contractor after a home insurance claim has more on vetting.
Hypothetical example
Say you hire a handyman through a neighborhood app to replace a few shingles. He tells you he works alone and carries no workers' comp. He slips from the ladder and fractures his spine. He has no health insurance and no comp, so his lawyer sues you, alleging the ground under the ladder was soft and you did not warn him.
Say your Coverage E limit is $300,000. Your insurer investigates and defends. Coverage E likely responds because he is not receiving comp benefits you are required to provide, unless your state treats him as your employee. If his medical care and lost earnings reach seven figures, the claim could exceed your limit. An umbrella policy, covered in umbrella insurance for homeowners: what it adds and where it stops, is the layer meant for that outcome. These figures are invented to show how the pieces fit, and a real claim would turn on state law.
If someone is hurt
Call emergency services first. Photograph the area, ladder and equipment before anything moves. Get the contractor's name, insurer and policy number, and the worker's name and employer. Do not promise to pay medical bills yourself. Report the incident to your own insurer promptly in writing, even if the contractor says its comp will handle it, and forward every demand letter or summons. what happens when someone sues you after an injury at your home describes the claim process.
Key takeaways
- A contractor's employees are normally the contractor's responsibility, and the contractor's workers' compensation should pay for their injuries.
- Your homeowners liability coverage is the backstop for uninsured workers, informal helpers and negligence claims against you as owner, subject to the workers' compensation exclusions.
- Hiring an uninsured contractor, acting as your own general contractor, or directing the work yourself moves risk toward you.
- Ask for a current certificate showing workers' compensation and liability, and put coverage requirements in the contract.
- A large renovation is a good moment to review your liability limit and consider an umbrella.