What If Your Subcontractor Does Not Have Insurance?


When you hire a subcontractor to work at your home, you may be taking on a certain amount of financial risk if the subcontractor does not have his own insurance coverage. Subcontractors should have their own insurance that will pay for damages or injuries. In some cases, individuals hire people who do not have up-to-date insurance and it ends up causing problems.

Contractors Insurance

When you hire a subcontractor to work on your home or to perform other duties on the premises, it is imperative that she have some type of insurance coverage. When she has insurance, if an injury occurs, the workers compensation policy will pay for medical bills and lost wages. If the contractor does not have this type of insurance, the burden for this financial responsibility must fall somewhere else. In many cases, you will have to turn to your insurance for this need.

Liability Insurance

When a contractor without insurance is injured at your home, you may need to turn to your liability insurance coverage. With liability insurance, the contractor can get most of his medical bills paid for by your homeowner's insurance company. Liability insurance is designed to pay for damages caused to other individuals while they are on your property. It is part of a standard homeowner's insurance policy in addition to the property damage coverage that most provide.

Homeowners Insurance Workers Compensation

Many homeowner's insurance policies also have a type of worker's compensation coverage built in. This type of coverage provides help for workers who are injured on your property without worker's compensation insurance. If someone is injured while working on the premises, check your insurance policy to see if you have this type of coverage. In some cases, it may come in the form of an additional insurance rider on top of your regular coverage.


In some extreme cases, the subcontractor may sue you for damages. This typically only occurs if you were negligent in some area in relation to your property. If the individual was injured because of your negligence, then your homeowners insurance may not pay all of the damages. If that happens, you could have a relatively large judgment against you that you have to come up with the money to pay in some way.

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