Insurance is a very nuanced industry. Understanding the differences in your coverage is crucial, especially with potential liabilities on your property. One common question that we at AZ Insurance Team hear a lot is "Does my liability insurance cover injuries to workers on their premises?" Today's blog will help you understand liability insurance and what it covers.
Understanding Liability Insurance
Liability insurance is designed to protect you from financial strain if someone is injured or their property is damaged due to your negligence. Liability coverage typically covers legal fees, medical expenses, and settlements up to the policy limit. However, the type of policy and circumstances of the injury can change how much is covered.
Coverage for Injuries to Workers
There is a lot of liability when doing renovations to a property. Liability coverage can be confusing, think about it like this. You have a big tree in your front yard and you hire an independent contractor to come and cut it down. In the process of cutting the tree down, it falls and lands on his shoulder. You are not liable for this injury. The person you hired should have their own workers compensation policy, that is their responsibility. However, lets say the next day your neighbor is walking to your front door and trips on a branch that fell from the cut down tree and breaks his wrist. Your liability insurance will cover this injury. If you were to unintentionally hurt someone anywhere outside of your home, even on vacation, then your liability insurance will cover this injury.
Steps to Ensure Adequate Coverage
Review Your Policy: Please make sure that you understand what is explicitly covered by your policy. Look to see if employees injuries are covered, and ensure that you have the right type of insurance to cover your property.
Consult Your Insurer: Your insurance agent is here to help you. Please if you have any questions we recommend reaching out and asking for their opinion on coverage details and if any additional policies are needed.
Consider Workers' Compensation Insurance: It has been said a few times in this blog, but it is incredibly important. If you have employees working consistently on you property, ask them to show you proof of their work comp policy. If they do not want to get a policy or do not have one, consider hiring someone else who does.
For any more questions regarding your insurance needs please feel free to call AZ Insurance Team today at (480) 535-5709!
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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