How to safely hire non-insured help

Question

Is there any insurance policy I can get as a homeowner, as an apartment renter, or as a rental property owner that would cover me for liability if I hire someone for work on my rental property or my residence and they do not have their own coverage?

I understand that my personal homeowner's/renter's insurance policy will not cover liability if I hire someone to perform work at my residence; similarly, I understand my homeowner's insurance policy for my rental property will not cover the same thing for that property.

If I am hiring someone that sets foot on my property, I generally ask if they're licensed/bonded/insured and request they provide evidence of general liability and workers compensation with valid dates before we move forward.

In the past, this has been a bit of a headache with some vendors since although I like them, they might have lied or at least lapsed in their coverage and then are scrambling to get valid paperwork for me in order to begin work. Going forward, I might need a service and it might be the only good folks around are those that do not have their own insurance.

Typical service providers I need to deal with for a personal residence or rental property could be a roofing contractor to repair/replace a leaking or old roof, a handyman fixing basic things in or around a property, a plumber to repair a toilet or other fixture, or a cleaning service to make a SFH move-in ready between tenants or to come weekly/monthly for regular ongoing cleaning while rental or primary residence is occupied.

Potential risks: A cleaner falls off of a step stool while dusting a ceiling fan, a handyman falls off a ladder while working on a high light fixture, or a roofer falls off the roof.

Typical service providers for a personal residence only could be a nanny or other in-home child care service taking care of an infant or toddler.

Potential risks: Nanny trips over a rug or slips on a child's toy in the home.

Answer 1

I understand that my personal homeowner's/renter's insurance policy will not cover liability if I hire someone to perform work at my residence;

Why is that? Generally homeowner's or renter's insurance policies would have a liability coverage, which should cover you for liability for damage caused to others on your property. That the whole point of the liability coverage. You can supplement that, as mentioned in the comments, with an umbrella insurance policy. Umbrella insurance policies will usually demand that any property has a dedicated liability insurance attached to it first.

That said, it's prudent to verify your contractors have a valid insurance coverage of their own, and some may be required to have it by the State licensing boards for their professions.

Those who work in your home as a full/part time job (not a babysitter once a month but a nanny 5 hours a day, for example) are considered your employees, and you should take out a special insurance for them specifically.

Your insurance agent will help you sorting all this out.

Answer 2

Here's an article from an insurance agency: Nanny Insurance: Required and Optional Coverages

• Workers Compensation (required)
• Employment Practices Liability Insurance (highly recommended)
• Auto Insurance with Nanny Added (highly recommended; required for a live-in nanny)
• Umbrella Insurance (highly recommended)
• Health Insurance (optional)