Consumption and Real Estate
What does “Workers’ Compensation / Employee Liab” mean on my homeowners insurance quote?
On my quote for homeowners insurance it has an item that says “Workers’ Compensation/Employee Liab -Fulltim” at a cost of $250. What does this mean? I am familiar with workers comp stuff paid by employers but what does this mean in the context of my homeowners insurance? Thanks!
On my quote for homeowners insurance it has an item that says “Workers’ Compensation/Employee Liab -Fulltim” at a cost of $250. What does this mean? I am familiar with workers comp stuff paid by employers but what does this mean in the context of my homeowners insurance? Thanks!
Re: Ginger’s answer, I don’t think that’s what it means – that part of the premium is $250 (the amount I have to pay) no coverage amount is listed.
Subquestion – is this a standard / required part of homeowners insurance or is it something optional?
In some states, on some policies, your homeowners insurance will provide workers compensation/employee benefits liability coverage for occasional or domestic employees.
It’s really on a state by state basis, and in some states, you can add the coverage on a higher end policy.
The workers comp part, would pay for lost wages and medical payments (which you are liable for), for any worker you hired at your house. This could include nanny, housekeeper, the guy that mows the lawn, the guy that cleans out your gutters, or the guy that’s painting the shed. The employee liability, pays for your legal defense and judgemetn costs, if someone working for you – not necessarily an employee, but ANYONE working on your premises – is injured, and chooses to sue you over it.
Obviously, the person to ANSWER this question is your agent. If you’re PAYING $250 a year for this endorsement (cheap, btw), then maybe your agent is under the impression that you have a full time gardener, nanny, housekeeper, au pair, or such.
There’s no COVERAGE LIMIT for workers compensation. It’s unlimited. That’s why no coverage limit is typically listed for workers comp. It’s that way on business workers comp policies, too.