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Insurance for Domestic Help and Household Workers
Accidents can happen and do happen from time to time, even with impeccable preparations. That’s why if you receive home services from a regular helper or helpers, you should consider protecting yourself, your home, and the helper with comprehensive insurance for domestic help.
Are you deciding whether you need domestic worker insurance? Wondering what the claimable situations and exclusions of the insurance policy are? This Pacific Prime Latin America article will answer these questions with bite-size information on this complex matter.
Insurance for Domestic Help: What Does It Do?
A sustainable insurance policy for domestic help can mitigate the financial costs and related treatment expenses if your domestic help or household workers suffer an injury, and at the same time defend you against civil and third-party liability costs should a major adverse incident occur.
Common accidents that domestic helpers and workers experience are:
Slips, Trips, and Falls: Domestic helpers can slip on wet floors, trip over objects, or fall from ladders while performing maintenance tasks.
Burns: Accidental burns can happen when using hot appliances, such as irons or stoves, or when handling hot liquids or chemicals.
Cuts and Lacerations: Workers may accidentally cut themselves while using sharp tools or handling broken glass or objects with sharp edges.
Falling Objects: Objects or equipment that are improperly stored or not secured can fall and cause injuries to domestic helpers or others in the vicinity.
In case any of the aforementioned accidents happened at your home, you can become liable for:
- Expenses related to their treatment
- Their loss of income due to the inability to work
- Their injury or death in a civil lawsuit
Civil Liability
Accidentally hurting someone else or damaging their property leaves you responsible for civil liability that can cause financial hardship. This also applies to the situation where an injury happens in your home that prevents the person from working for a time, and they pursue you for loss of income.
Here are examples of some possible civil liabilities:
- Worker’s Injury: If a domestic helper or worker sustains an injury while working in your home, you may be held liable for their medical expenses, rehabilitation costs, and any loss of income they suffer due to the injury.
- Injury to Third Parties: If a worker causes an accident or injury to a third party while performing their duties in or around your home, you may be held responsible for the resulting losses, including medical expenses, pain and suffering, and loss of income.
- Property Damage: Workers, such as plumbers or electricians, may accidentally cause damage to your property or neighboring properties while carrying out their tasks. In such cases, you may be liable for the cost of repairs or compensation for the affected parties.
- Negligent Supervision: If you fail to provide proper supervision or instructions to domestic helpers or workers, and their actions result in harm to themselves or others, you may be held liable for negligence and face civil claims.
Third-Party Liability Insurance for Your Home
Third-party liability insurance is designed to cover civil liabilities that arise when you are held legally responsible for causing injury, damage, or loss to a third party. You can acquire third-party liability coverage through a home insurance policy or as a stand-alone add-on.
Here’s how third-party liability insurance can cover civil liabilities:
Financial Protection: Third-party liability insurance provides financial protection by covering the costs associated with legal claims and damages awarded to the injured party or affected third party.
Legal Defense: If a legal claim or lawsuit is filed against you, the insurance policy typically includes coverage for legal defense costs. This includes hiring lawyers, gathering evidence, and other legal expenses incurred in defending against the claim.
Medical Expenses: If a third party sustains injuries or requires medical treatment as a result of an incident involving your domestic helper or worker, the insurance policy may cover their medical expenses, including hospitalization, surgeries, medications, and rehabilitation.
Property Damage: If the actions of your domestic helper or worker cause damage to someone else’s property, third-party liability insurance can cover the costs of repairing or replacing the damaged property.
Limitations and Exclusions
After all, even for comprehensive insurance coverage, there will be limitations and exclusions where insurance companies will refuse to settle the bill in specific circumstances. It is recommended to check the fine print before signing to a policy.
With that said, you can expect these situations to be almost always excluded:
- Any injuries that your home guests sustained while on or near your property will not be covered unless the damage was caused by the named policyholder, their immediate family member, or by someone working at the home.
- Any damages, injuries, or losses from criminal or unlawful activities.
- Any loss or damages to goods and persons when the home is in the process of construction or renovation where assembling and dismantling are involved, but the insurance covers workers who are to make repairs or maintenance at the home.
Consult Pacific Prime Latin America on Your Insurance Choice
Comprehensive home insurance can protect you, your home, and your helpers from unexpected injuries and accidents, sometimes involving a third party which could be financially challenging to settle.
Pacific Prime has over 20 years of experience in the insurance industry. We offer home insurance coverages including third-party liability as a stand-alone purchase or as a part of the policy. Our insurance experts can find and compare to find you the most cost-effective deal by top insurers.
Contact us today for impartial advice, or get started with our advanced online quote tool!
Since joining Pacific Prime, Eric was exposed to a new world of insurance. Having learned about insurance products extensively, he has taken joy and satisfaction in helping individuals and businesses manage risks and protect themselves against financial loss through the power of words.
Although born and raised in Hong Kong, he spent a quarter of his life living and studying in the UK. He believes his multicultural experience is a great asset in understanding the needs and wants of expats and globe-trotters.
Eric’s strengths lie in his strong research, analytical, and communication skills, obtained through his BA in Linguistics from the University of York and MSc in Teaching English to Speakers of Other Languages (TESOL) from the University of Bristol.
Outside of work, he enjoys some me-time gaming and reading on his own, occasionally going absolutely mental on a night out with friends.
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