You’ve invested significantly in your home. You hire professionals to maintain and improve it. But there’s a question most homeowners — even the most financially sophisticated — rarely think to ask: what happens if one of those professionals gets hurt on your property, or causes damage to a neighbor’s home? Without a few critical documents in hand before work begins, the answer could involve your own insurance, your own assets, and a great deal of unnecessary aggravation.
The solution starts with three words: Certificate of Insurance. A COI is a one-page summary issued by a contractor’s insurance carrier confirming that active coverage is in place. Before any contractor — roofer, landscaper, general contractor, electrician, plumber — sets foot on your property, you should request a current COI and review it carefully. It should show, at minimum, general liability coverage and workers’ compensation coverage, with policy expiration dates that extend through the duration of the project.
General liability coverage protects you if the contractor damages your home or a neighboring property. Workers’ compensation coverage is equally important: it provides benefits to any worker who is injured on the job, and critically, it shields you from being named in a claim. If a contractor’s employee falls off your roof and that contractor carries no workers’ comp, you could face a lawsuit seeking damages for medical expenses, lost wages, and more. The simple act of verifying coverage before handing over a deposit can prevent exactly that scenario.
For New York homeowners who employ domestic staff — housekeepers, nannies, personal chefs, full-time caretakers — there is an additional layer of protection worth understanding. New York is one of a handful of states that requires homeowners to carry workers’ compensation coverage for household employees who work 40 or more hours per week. This coverage is typically offered as an endorsement on a standard homeowners policy or as a standalone policy through the New York State Insurance Fund. Failing to carry it when required exposes you to personal liability for any workplace injury and potential fines from the state. If you employ domestic staff on a regular, substantial basis, confirm with your broker that this coverage is in place.
The broader principle is this: your homeowner’s policy was designed to protect you from the unexpected. It was not designed to absorb risks that belong to someone else. Verifying a contractor’s insurance before work begins and ensuring your own policy accounts for the people working within your home, is a straightforward discipline that protects everything you’ve built.
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