Oh the demands on you…a job, family, your hobbies, volunteer work, your children's school and recreational obligations, the lawn and garden, house cleaning, repairs and on and on. Like many of your peers, you might find that you just don't have the time to get all of it done. Also, like many of your friends and neighbors, you may be "outsourcing" some of your responsibilities.
In days of old, a mark of the wealthy was to
have most of your work done by servants. While this is still true
of the very wealthy; a newer development is that this is now becoming
a mark of the middle-class. Increasingly, more people are hiring
folks to either assist or takeover duties such as:
While such help used to fall under the auspices of butlers, maids
and nannies, today, individual specialists are providing similar
services on either a part-time or full-time basis.
When personal services are provided by a commercial
business, such as a limousine or laundry service or a lawn care
company, there's generally no need to worry about being held liable
for injury to another person or their property.
Example: The Burlies never had time to take care of their
lawn. As their grass grew thinner and the weeds spread, Mr. Burlie
decided to sign-up for the "Green Thumb" package from
Lucky's Lawn Services. One afternoon, a Lucky Lawn specialist
arrived at the Burlie's home, unraveled a hose and began to spray
a weedkiller. A few minutes later, Stevie, who lived several homes
away from the Burlies, came rushing by on his skates. Stevie didn't
see the hose until it tangled his wheels and sent him headlong
onto the cement curb. In this instance, Lucky's Lawn Services
would be responsible for the injuries.
However, as individuals are hired by Joe and Jane America to perform
personal services, the responsibility for injuring other people
or damaging the property of others may begin to fall upon Joe
and Jane. In these cases, will Joe and Jane have any help in paying
for damages or injuries?.
A person who employs the services of another
may be held legally liable should the "employee" cause
an accident. Can the average person who is guilty of nothing more
than trying to make their lives a little less hectic depend upon
their homeowners insurance for protection? Well, coverage depends
upon the details surrounding an event. Generally a homeowners
policy will exclude coverage for losses that are related to the
covered person's (insured's) business or when other coverage,
such as workers compensation or disability insurance, should apply
to the loss.
Example: Molly Kelp really likes her neighbors' son, Peter,
who is home from college. Molly knows that Peter is struggling
for money to keep attending school, so she occasionally hires
him to do jobs around her home. One day, she asks him to trim
the branches of a tree that is in the front of her home. The branches
are low enough to disturb traffic in the street. Peter jumps down
from the ladder he's using for the job at the same time that a
car is passing by. The ladder tips over onto the car's hood and
the surprised driver swerves off the street and into the front
of another neighbor's home. In this case, Molly's homeowner policy
may apply to the damages caused by Peter. Why? Because the work
was strictly related to Molly's use of her residence. If Peter
caused an accident while carrying a ladder to paint Molly's law
office which is next door to her home; coverage would be excluded.
If you're not sure about what happens when a person you hire causes a loss, you need to do your homework. Discuss the details with an insurance professional and bring a copy of your insurance policy. Between the two of you, you should be able to make sure that your needs are covered.
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