I need some advice and maybe someone has asked this question before. My sister is wanting someone to come in to the home for 8 hrs a day 3/4 days a week. I’m worried that if this person gets hurt she might sue my husband. She said she would sign a waiver but not sure we should even go this route. We are waiting for help from DFACS, been on a list for a few years. Mom has dementia but we think she isn’t ready for the care facility yet. Need some advice before getting ourselves in trouble.
Liability coverage is cheap to upgrade depending on the limits. For example, in my state to upgrade from $300,000 to $500,000 of liability coverage it only costs an extra few dollars per month. Going above $500k generally requires an umbrella policy; depending on who the insurance carrier is and the policy.
There are different rules for domestic employees. So if you have a full time live in Nanny or Housekeeper you are an employer and must have the necessary insurances, pay state taxes etc.
An agency that simply places employees and labels them as independant contractors is skating on pretty thin. An independent contractor must have their own official place of business ice. i got caught like that when I started the horse farm. A young woman who was in college came every week to give my daughter and one other riding lessons. I paid he a set fee from the farm business account and had the misfortune to get audited and had to pay all the back taxes. Another woman in town who opened a book shop had a friend who volunteered to help her without pay. Thesame auditor was visiting when the friend breezed in , hung up her coat and said "Now B where would you like me to start to-day. No amount of explaining sorted that one out. The friend was acting like an employee therefor she was an employee!!!!!!!!!!!!
I recommend ONLY hiring help through an agency. They are required to hold liability insurance for their employees.
Are you absolutely sure that the house is in your "husband's" name and his alone? He may be named as the sole beneficiary on beneficiary deed, which means that once she passes, then the house belongs to him and the deed will then be placed on State record that the house is his and his alone.
EVEN, if it is or is not.....EVEN if the in-home care person states that he/she will sign a waiver YOU AND YOUR HUSBAND ARE NOT PROTECTED.
One should ALWAYS HAVE HOMEOWNER'S INSURANCE no matter. If a friend comes to visit your Mother-in-law and happens to trip coming/going, inside the house which causes injury.....who ever is named on the Homeowner's Insurance coverage will be the responsible party.
Your husband may have had the insurance placed in his name with your Mother's-in-law ok thus making your husband the 'owner' of the policy, but not the house to protect/pay for any incident that may occur.
Just because the home maybe mortgage free does not exclude it from having insurance. That would be like driving your car without full coverage or liability.
99.9999% you could also be named in the law suit should one arise; most assuredly your husband can be sued. The waiver is worthless unless you need tissue to blow your nose.
It would need to be a legal part of the insurance policy and EVERYONE WHO STEPS FOOT IN THE HOUSE WOULD BE REQUIRED TO SIGN TOO.
Best thing is to contact the care provider's employer and discuss the issue. Since the person would actually be 'on the job', the employer should have coverage for their health/accidents as required by law for such companies. Make sure that the company is LICENSED/BONDED for your protection.
IF ANYTHING SHOULD HAPPEN TO YOUR MOTHER-IN-LAW DUE TO NEGLIGENCE, YOU CAN MAKE CLAIM AGAINST THEIR INSURER AND POSSIBLY NEED TO PLACE A MECHANIC'S LIEN ( has nothing to due with cars etc).
They have to protect themselves from the same type of action should something happen with their employees i.e. stealing, physically hurting, not doing their job...
My MIL owned a rental house, the mailman walked across the lawn and stepped into a hole in the lawn--(barely sprained his ankle) and sued my inlaws for $250K! SO stupid, and he actually lost b/c he was not supposed to walk across lawns, only on sidewalks, which are "owned" by the county--anyway, people can and will sue over some pretty stupid stuff, so it's better to be prepared than be sorry.
The mailman lawsuit lasted over 2 years. It was so stressful for MIL.
Yes, is seems simple enough insured or not? Paying them is the game changer and unless they are in this country illegally if they get seriously hurt you can guarantee someone will advise them to sue. Who wouldn't, hurt, can't work, no workers comp insurance to pay medical bills and 2/3rd of salary.
Just an example of how crazy the judicial system is. We were building a playground shade cover out of structural steel, the area was fenced off and posted under construction keep out. A mom helped her child through the construction fence and allowed them to play on the stacked up construction material, the child fell breaking their arm injuring their head, they turned around and sued our company . They actually won medical expenses and damages, even though we had complied with the law providing a barrier with written notification. They illegally entered the area and still made enough for this child to go to college on. That is why I recommend talk to your agent and find out if the worker is covered but also talk to a lawyer to guarantee that your assets are protected. Attorneys are hungry and will take any kind of care. If you are sued, all of your personal assets could be at stake if this worker is not insured. Insurance companies will not even provide an attorney if it is deemed that the situation was never covered under your policy.
But sensible precautions are only sensible, and insurance is the answer. For home owner's liability, see your home insurance broker. For hospice workers' indemnity, check with your hospice provider what cover is held by whom for what and that there aren't any gaps.
dwyerlaw.com.au/blog/2016/june/the-consequences-if-someone-is-injured-on-your-p.aspx
Yes, in my opinion, she could sue - but I believe it would be covered under your House/Home Insurance. Ask your Insurance Agent about this. He/she should know the answer.
It would cost between $750 and $1,000 annually (with guaranteed price increased over the year(s) ) to purchase a commercial w/c policy. And that's only the base cost of the policy. If the person was injured actually was, and filed a successful w/c claim, then the payments for the injury could go on for an indefinite period, depending on the award.
We went the route of hiring people through an agency. There's too much risk not to do this.
The claim would be filed against the individual who's of record as holding title to the house.
As to waivers, one potential issue could be proof that the individual who signed it actually understood what she was doing - "informed consent" might be the best way to describe it. I.e., did she realize what she was waiving?
If you go this route, definitely have an attorney draft the waiver. This isn't a DIY job.
If there is any possibility that grandma might not have enough money to pay for her care when she needs a nursing home, the Medicare spend down allows her to pay rent. You can always give her back the rent (less taxes) if she does not need medicare assistance for a NH later on, once she's out of money. She can pay renter's liability insurance (really cheap) and she should be the one hiring the aide and having the consult with CPA. If grandma realizes she can't handle all this money talk, she needs to give her durable POA to someone local so they can take care of it in HER name, not anyone else's.
I would also check about the waiver, some states will not allow documents that give away people's rights. Maybe a caregiver contract would be the way to avoid being sued. I would consult an attorney and a cpa.
To many times I have heard about the person that will sign a waiver, hold harmless, etc, until they get hurt, then all if that goes out the window.
Maybe rent the house to sister and make her provide insurance, I'm sure an attorney will lead you to the best way to protect yourselves that let mom have some help.
Please come back and let us know what happens, we are all learning. Good luck!