In California, there is a mandatory endorsement on every homeowners policy for workers compensation. However, that endorsement can be very confusing and only covers very specific situations.
Before the coverage under the workers compensation endorsement on the policy starts, there are two things that must have occurred in the 90 days prior to the injury.
1. The “residence employee” must have earned no less than $100 in wages.
2. The “residence employee” must have actually been engaged in such employment by the “insured” for no less than 52 hours in those 90 days prior to the injury.
A “Residence Employee” is defined as: An employee of an insured whose duties are related to the maintenance or use of the residence premises, including household or domestic services; or One who performs similar duties elsewhere not related to the business of an insured.
What does this mean? The person who you have come one time to do a small repair on the house would not have coverage under this endorsement. I.e., the handyman who comes in to repair one section of your fence for a day. Yes he may have charged you $500 for the job, but did not complete the 52 hours of work to be considered a “residence employee”. We do always suggest that you make sure any handyman or contractor you hire has General Liability Insurance as well as Workers Compensation or their own Health Insurance.
This homeowners workers comp endorsement is intended to cover the occasional worker like a housekeeper or a babysitter who comes on a weekly basis or a couple times a week. Again, AFTER, they have met that $100 and 52 hour requirement.
For workers who work over 20 hours a week like a full time nanny or caregiver, you may need to add what they call an inservant or out servant endorsement onto your Homeowners policy to have proper coverage. If you have someone who works for you over 20 hours per week, contact your Carlsbad Homeowners Insurance or Riverside Homeowners Insurance agent directly to discuss your individual needs.
This is just a brief overview of coverage and obviously every situation is different. The endorsement does have some limitations as far as the maximum amount of coverage as well as certain exclusions. If you would like a copy of the endorsement or to know how it would pertain to you specifically, please contact one of our agents or customer service representatives for more information.
You can contact our Carlsbad Insurance office at 760-795-2002 or our Temecula Insurance office at 951-296-6833.