I’ve been a landlord for 30+ years and recently inherited additional properties through an estate. Last fall I had a chain of events that now has me reevaluating how to manage liability going forward.

While acting as POA and trustee for my dying parent, one of their properties (70 miles away) developed a roof leak. I sent my longtime handyman, who planned to bring a helper I had previously approved. As they were loading up, the helper was unexpectedly arrested on a warrant, leaving the handyman without assistance.

The handyman’s wife asked to ride along on the outoftown repair. When they arrived, she sat on an old staircase that predated modern building codes. When she stood up, she lost her balance and fell, suffering significant injuries. Conflicting accounts were given about whether 911 was called or whether she was driven directly to the hospital.

She spent a month hospitalized, later required spinal surgery, and has since hired an attorney. She has moved out of state. Her attorney has now requested insurance information for all of my assets and all estate assets.

Important: I did not own the property — I was acting trustee.

My attorney has expressed concern that insurance may not cover this because I did not know she would be there and did not give permission for her to be on the property. She is currently characterizing the wife as a trespasser. Coverage is unclear.

She has also suggested several drastic changes:

Stop hiring anyone connected to this handyman (not realistic in a small town)

Avoid contacting my own insurance company for clarification

Require all handymen to form LLCs

Hire a property management company (I’m reluctant due to tenantquality concerns)

A friend suggested using a temp agency since they carry workers’ comp, but that would raise labor costs by 56%, making many repairs uneconomical.

My question:

Has anyone dealt with something similar? How do you continue working with a trusted, loyal crew while still protecting yourself legally and financially?

Even a glance at the "insured" contractor policies I've used showed them to have "general liability" coverage only, no medical coverage if they are injured.

This situation has highlighted the risks of property ownership, and I’m looking for practical ways to maintain my team and stay responsive to tenant needs without exposing myself to catastrophic liability.

In my state a solo handyman/contractor can't get worker's comp insurance due to exemption under law and if they could get it they couldn't afford it anyway. I have them sign a contract where confirm they're exempt from workers comp or will obtain it for their employees or helpers if they're not exempt. The jist of the contract is to make clear they're an independent contractor with their own set of risks and they'll idemnify me from claims related to worker's comp related to anyone they employ.

Why should YOU own the real estate? If you have it in a land trust with a personal property trust as the trustee and your LLC as the beneficiary, try to find the folks you need to reach out to sue.

I would follow your attorney's advice to a T. Years ago I had a similar "hypothetical" conversation w my insurance guy. He said just mentioning stuff like this compel them to consider this as a potential risk and report same to the insurance carriers they represent.

While you may be fine on this one since she was not technically a worker, if the first guy hadn't been arrested and fell off the roof you could be at significant risk for not having workers comp insurance.

I do similar to what GKARL explained if it isn't work going to a known, licensed, business entity. In other words, the plumber, HVAC company, and Electrician are all licensed so no need to do a contract. Guys hired to do clean-outs, painters, handymen, and the like all have to sign a form clarifying they are an independent contractor, responsible for their own insurance for everyone associated (themselves, employees, and subcontractors), outlining the scope of work, the timeline to complete, and the payment details and draws if there are any.

Zero, It was just simpler to post this here. This is the contract I used.

Independent Contractor Agreement

This Independent Contractor Agreement (“Agreement”) is entered into between ______________________ (“Contractor”), with an address of __________________________________________________________ and_____________________________ (the “Company”) to set forth the terms and agreement pursuant to which the Contractor will provide assistance and services to the Company.

1. Background and services provided: The Company is a real estate investment and management company providing housing throughout the Lehigh Valley. Independent Contractor possesses the necessary skills and qualifications together with the required tools and transportation to perform the following services:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ . Independent Contractor is not subject to any other agreement, contract or restrictive covenant that would prohibit it from performing services for the Company.

2. Term: This Agreement shall continue so long as the Company provides work to the Independent

Contractor and the Independent Contractor accepts and performs work for the Company. However, at no

time shall the Company be required to provide Independent Contractor with work and at no time shall the

Independent Contractor be required to accept work from the Company. During the course of Independent

Contractor’s performance of any work for the Company, either party may immediately terminate this

Agreement by providing written notice to the other party. Upon the termination of this Agreement, the

Independent Contractor shall cease performing any and all work for the Company. The Company shall

not pay the Independent Contractor for Work not performed.

3. General Performance – All Work of the Independent Contractor will be performed in a prompt,

thorough and workmanlike manner, in accordance with the plans and specifications for each job and must

comply with relevant Scopes of Work, all Federal and State laws, codes and regulations and all county

and/or municipal ordinance and regulations effective where the Work is to be performed under this

Agreement. All permits, fees, taxes and expenses connected with such compliance are to be paid by the

Independent Contractor. In cases where work is not completed correctly, Independent Contractor will

promptly take whatever corrective action is necessary to remedy specific deficiencies as determined by

the Company.

Independent Contractor shall control the time, manner and means of the Work that it provides to the

clients and clientele of the Company. The specific services provided are left to the professional judgment

of the Independent Contractor. In addition, the Independent Contractor shall provide any and all

equipment and tools necessary to perform the above services.

4. Independent Contractor – The Company and the Independent Contractor agree that the

Independent Contractor is being hired solely as an Independent Contractor and that neither the

Independent Contractor, nor its employees (if it has employees) shall be deemed to be employees of the

Company. Similarly, neither the Company nor its employees shall be deemed to be employees of the

Independent Contractor. Independent Contractor shall have the flexibility, retains the right and is

encouraged to work for other individuals, customers, or related construction companies. The Companies

shall have the flexibility and retains the right to provide Work to other independent contractors and

nothing in this Agreement shall obligate the Company to provide Work to the Independent Contractor.

Nothing in this Agreement is intended or shall be deemed to create a partnership or joint venture between

the parties and neither party shall have the authority to act as the other’s agent or commit or bind the

other. In no event shall any provision contained in this Agreement be construed or deemed to confer any

rights on any other person or entity as a third-party beneficiary or otherwise.

The Independent Contract represents and agrees to the following:

a. It is free from the Company’s control or direction when performing the Work;

b. It is customarily engaged in an independently established trade, occupation, profession or

business.

c. It possesses the essential tools for the job, independent of the Company, for whom the Work

is performed

d. It realizes a profit or loss as a result of performing its services;

e. Its owner has a proprietary interest in the business (sole proprietorship), limited liability

company or corporation operating as the Independent Contractor;

f. It maintains an independent business location;

g. It performs similar services for other hiring parties and holds itself out as able to perform

similar services;

h. It now has and shall maintain individual liability insurance in an amount of at least $1,000,000;

and

I. It now has and shall maintain all required worker’s compensation coverage for its employees.

j. Where independent subcontractors are used, it shall ensure that said subcontractors maintain worker’s compensation coverage for its employees where applicable or are exempt under PA worker’s compensation laws.

5. Rate of Compensation & Payment of Services –__________________________________________

6. Default – If Independent Contractor should default in the performance of any of its duties or

obligations hereunder, and such default should continue after verbal or written notice, Company may

immediately terminate this Agreement. Independent Contractor shall be due only such sums for approved

work up until termination without the addition of prospective profits or any other charges whatsoever. In

case of such termination of the employment of the Independent Contractor, Independent Contractor shal

not be entitled to receive any further payment under this Agreement.

7. Indemnification – To the fullest extent permitted by the law, Independent Contractor will

defend, indemnify, and hold the Company harmless from all damages, losses, and expenses, including

attorneys’ fees, from any claims or damages of any kind resulting from the performance of this

Agreement, but only to the extent caused in whole or in part by any negligence of Independent Contractor

or any of its subcontractors, agents, or employees.

With respect to any and all claims brought against the Company, its affiliates and their respective

directors, officers, employees, agents, successors and assigns by an employee of Independent Contractor,

the Independent Contractor for itself, its successors and assigns, hereby expressly agrees to waive any

provision of the Pennsylvania Workers’ Compensation Act whereby Independent Contractor could

otherwise preclude its joinder as an additional defendant, or avoid liability in any action at law or in

equity or otherwise, where an employee of the Independent Contractor, its heirs, assigns or anyone

entitled to receive damages by reason of any injury or death, arising from any act or omission, whether

negligent, grossly negligent or otherwise, on the part of the Independent Contractor, in an action, lawsuit

or legal proceeding against the Company. The indemnification obligations accepted by the Independent

Contractor under this paragraph shall not be limited in any way by any limitation on the amount of or type

of damages, compensation or benefits payable by the Independent Contractor pursuant to the

Pennsylvania Workers’ Compensation Act or any other employee benefit law, rule or regulation. The

Independent Contractor agrees and acknowledges that by undertaking to indemnify the Company under

this paragraph, the Independent Contractor is expressly undertaking indemnification liability by written

contract pursuant to Section 481(b) of the Pennsylvania Workers’ Compensation Act, 77 Pa. C.S. §481(b).

8. Taxes and Benefits – As an independent contractor, Independent Contractor shall be solely

responsible for paying all applicable taxes. Furthermore, Independent Contractor shall not be eligible to receive any benefits that the Company may offer to its regular employees. The Company will provide Independent Contractor with a tax Form 1099 at the end of each year documenting the amount paid to Independent Contractor. The Company will not withhold any taxes, FICA, or other amounts from its payments to Independent Contractor.

9. Obligations of Independent Contractor – Independent Contractor acknowledges and agrees

that it alone is responsible for the following:

Collection, reporting and payment when due all wages and taxes, including without

limitation, all federal, state and local taxes, social security, withholding and unemployment

compensation taxes (if applicable) and any other taxes and license fees imposed;

b.Obtain and maintain during the term of this Agreement, General Liability Insurance of at

least $ 1,000,0000, and if applicable Workers/Unemployment Compensation Insurance

for any of its employees; and

c.. Comply at its expense with all federal, state and local safety, immigration, health and work

laws, regulations, directives and rules.

10. Confidentiality and Nondisclosure – During the course of this Agreement, Independent Contractor will have access to or become aware of trade secret information. Independent Contractor agrees to hold this information in confidence and not disclose it to outsiders without prior written consent of Company.

11. Restrictive Covenant-Independent Contractor shall have the right to contract with others and

perform the same work for others that it performs for the Company.

12. Notice- Independent Contractor shall notify the Company of any changes to its liability or

workers compensation insurance.

13. Assignment – No assignment of this Agreement by the Independent Contractor is permitted

without the prior written permission of the Company. The Company may assign this Agreement.

14. Resolution of Disagreements – The parties agree that any dispute shall be decided by arbitration

in accordance with the applicable rules of the American Arbitration Association (AAA).

Arbitration shall take place in Northampton County, Pennsylvania. Any award and/or determination

by the arbitrator(s) shall be final and judgment may be entered upon it in accordance with the applicable law in any court having jurisdiction thereof.

15. Amendment – This Agreement may only be amended or modified by an instrument in writing

executed by all the parties.

16. Choice of Law – It is the intention of the parties that the laws of the Commonwealth of

Pennsylvania should govern the validity of this Agreement, the construction of its terms, and the

interpretation of the rights and duties of the parties.

17. Counterpart Execution – This Agreement may be executed in two or more counterparts, each of

which shall be deemed an original, but all of which together shall constitute but one and the same

instrument.

18. Integrated Agreement – This Agreement constitute the entire agreement between the parties

hereto, and there are no agreements, understandings, restrictions, warranties, or representations

between the parties other than those set forth herein or herein provided for.

19. Drafting – This Agreement has been reviewed by and is acceptable to all parties and shall not be

construed against any party as the drafter of the Agreement.

20. Binding effect – This Agreement shall be binding upon the parties hereto and their respective

successors and assigns.

21. Severability – No part of this Agreement will be affected if any other part of it is held invalid or

unenforceable.

By : _________________________________ By: ______________________________________

Date: ___________________________________ Date: ______________________________________

Zero, It was just simpler to post this here. This is the contract I used.

Independent Contractor Agreement

This Independent Contractor Agreement (“Agreement”) is entered into between ______________________ (“Contractor”), with an address of __________________________________________________________ and_____________________________ (the “Company”) to set forth the terms and agreement pursuant to which the Contractor will provide assistance and services to the Company.

1. Background and services provided: The Company is a real estate investment and management company providing housing throughout the Lehigh Valley. Independent Contractor possesses the necessary skills and qualifications together with the required tools and transportation to perform the following services:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ . Independent Contractor is not subject to any other agreement, contract or restrictive covenant that would prohibit it from performing services for the Company.

2. Term: This Agreement shall continue so long as the Company provides work to the Independent

Contractor and the Independent Contractor accepts and performs work for the Company. However, at no

time shall the Company be required to provide Independent Contractor with work and at no time shall the

Independent Contractor be required to accept work from the Company. During the course of Independent

Contractor’s performance of any work for the Company, either party may immediately terminate this

Agreement by providing written notice to the other party. Upon the termination of this Agreement, the

Independent Contractor shall cease performing any and all work for the Company. The Company shall

not pay the Independent Contractor for Work not performed.

3. General Performance – All Work of the Independent Contractor will be performed in a prompt,

thorough and workmanlike manner, in accordance with the plans and specifications for each job and must

comply with relevant Scopes of Work, all Federal and State laws, codes and regulations and all county

and/or municipal ordinance and regulations effective where the Work is to be performed under this

Agreement. All permits, fees, taxes and expenses connected with such compliance are to be paid by the

Independent Contractor. In cases where work is not completed correctly, Independent Contractor will

promptly take whatever corrective action is necessary to remedy specific deficiencies as determined by

the Company.

Independent Contractor shall control the time, manner and means of the Work that it provides to the

clients and clientele of the Company. The specific services provided are left to the professional judgment

of the Independent Contractor. In addition, the Independent Contractor shall provide any and all

equipment and tools necessary to perform the above services.

4. Independent Contractor – The Company and the Independent Contractor agree that the

Independent Contractor is being hired solely as an Independent Contractor and that neither the

Independent Contractor, nor its employees (if it has employees) shall be deemed to be employees of the

Company. Similarly, neither the Company nor its employees shall be deemed to be employees of the

Independent Contractor. Independent Contractor shall have the flexibility, retains the right and is

encouraged to work for other individuals, customers, or related construction companies. The Companies

shall have the flexibility and retains the right to provide Work to other independent contractors and

nothing in this Agreement shall obligate the Company to provide Work to the Independent Contractor.

Nothing in this Agreement is intended or shall be deemed to create a partnership or joint venture between

the parties and neither party shall have the authority to act as the other’s agent or commit or bind the

other. In no event shall any provision contained in this Agreement be construed or deemed to confer any

rights on any other person or entity as a third-party beneficiary or otherwise.

The Independent Contract represents and agrees to the following:

a. It is free from the Company’s control or direction when performing the Work;

b. It is customarily engaged in an independently established trade, occupation, profession or

business.

c. It possesses the essential tools for the job, independent of the Company, for whom the Work

is performed

d. It realizes a profit or loss as a result of performing its services;

e. Its owner has a proprietary interest in the business (sole proprietorship), limited liability

company or corporation operating as the Independent Contractor;

f. It maintains an independent business location;

g. It performs similar services for other hiring parties and holds itself out as able to perform

similar services;

h. It now has and shall maintain individual liability insurance in an amount of at least $1,000,000;

and

I. It now has and shall maintain all required worker’s compensation coverage for its employees.

j. Where independent subcontractors are used, it shall ensure that said subcontractors maintain worker’s compensation coverage for its employees where applicable or are exempt under PA worker’s compensation laws.

5. Rate of Compensation & Payment of Services –__________________________________________

6. Default – If Independent Contractor should default in the performance of any of its duties or

obligations hereunder, and such default should continue after verbal or written notice, Company may

immediately terminate this Agreement. Independent Contractor shall be due only such sums for approved

work up until termination without the addition of prospective profits or any other charges whatsoever. In

case of such termination of the employment of the Independent Contractor, Independent Contractor shal

not be entitled to receive any further payment under this Agreement.

7. Indemnification – To the fullest extent permitted by the law, Independent Contractor will

defend, indemnify, and hold the Company harmless from all damages, losses, and expenses, including

attorneys’ fees, from any claims or damages of any kind resulting from the performance of this

Agreement, but only to the extent caused in whole or in part by any negligence of Independent Contractor

or any of its subcontractors, agents, or employees.

With respect to any and all claims brought against the Company, its affiliates and their respective

directors, officers, employees, agents, successors and assigns by an employee of Independent Contractor,

the Independent Contractor for itself, its successors and assigns, hereby expressly agrees to waive any

provision of the Pennsylvania Workers’ Compensation Act whereby Independent Contractor could

otherwise preclude its joinder as an additional defendant, or avoid liability in any action at law or in

equity or otherwise, where an employee of the Independent Contractor, its heirs, assigns or anyone

entitled to receive damages by reason of any injury or death, arising from any act or omission, whether

negligent, grossly negligent or otherwise, on the part of the Independent Contractor, in an action, lawsuit

or legal proceeding against the Company. The indemnification obligations accepted by the Independent

Contractor under this paragraph shall not be limited in any way by any limitation on the amount of or type

of damages, compensation or benefits payable by the Independent Contractor pursuant to the

Pennsylvania Workers’ Compensation Act or any other employee benefit law, rule or regulation. The

Independent Contractor agrees and acknowledges that by undertaking to indemnify the Company under

this paragraph, the Independent Contractor is expressly undertaking indemnification liability by written

contract pursuant to Section 481(b) of the Pennsylvania Workers’ Compensation Act, 77 Pa. C.S. §481(b).

8. Taxes and Benefits – As an independent contractor, Independent Contractor shall be solely

responsible for paying all applicable taxes. Furthermore, Independent Contractor shall not be eligible to receive any benefits that the Company may offer to its regular employees. The Company will provide Independent Contractor with a tax Form 1099 at the end of each year documenting the amount paid to Independent Contractor. The Company will not withhold any taxes, FICA, or other amounts from its payments to Independent Contractor.

9. Obligations of Independent Contractor – Independent Contractor acknowledges and agrees

that it alone is responsible for the following:

Collection, reporting and payment when due all wages and taxes, including without

limitation, all federal, state and local taxes, social security, withholding and unemployment

compensation taxes (if applicable) and any other taxes and license fees imposed;

b.Obtain and maintain during the term of this Agreement, General Liability Insurance of at

least $ 1,000,0000, and if applicable Workers/Unemployment Compensation Insurance

for any of its employees; and

c.. Comply at its expense with all federal, state and local safety, immigration, health and work

laws, regulations, directives and rules.

10. Confidentiality and Nondisclosure – During the course of this Agreement, Independent Contractor will have access to or become aware of trade secret information. Independent Contractor agrees to hold this information in confidence and not disclose it to outsiders without prior written consent of Company.

11. Restrictive Covenant-Independent Contractor shall have the right to contract with others and

perform the same work for others that it performs for the Company.

12. Notice- Independent Contractor shall notify the Company of any changes to its liability or

workers compensation insurance.

13. Assignment – No assignment of this Agreement by the Independent Contractor is permitted

without the prior written permission of the Company. The Company may assign this Agreement.

14. Resolution of Disagreements – The parties agree that any dispute shall be decided by arbitration

in accordance with the applicable rules of the American Arbitration Association (AAA).

Arbitration shall take place in Northampton County, Pennsylvania. Any award and/or determination

by the arbitrator(s) shall be final and judgment may be entered upon it in accordance with the applicable law in any court having jurisdiction thereof.

15. Amendment – This Agreement may only be amended or modified by an instrument in writing

executed by all the parties.

16. Choice of Law – It is the intention of the parties that the laws of the Commonwealth of

Pennsylvania should govern the validity of this Agreement, the construction of its terms, and the

interpretation of the rights and duties of the parties.

17. Counterpart Execution – This Agreement may be executed in two or more counterparts, each of

which shall be deemed an original, but all of which together shall constitute but one and the same

instrument.

18. Integrated Agreement – This Agreement constitute the entire agreement between the parties

hereto, and there are no agreements, understandings, restrictions, warranties, or representations

between the parties other than those set forth herein or herein provided for.

19. Drafting – This Agreement has been reviewed by and is acceptable to all parties and shall not be

construed against any party as the drafter of the Agreement.

20. Binding effect – This Agreement shall be binding upon the parties hereto and their respective

successors and assigns.

21. Severability – No part of this Agreement will be affected if any other part of it is held invalid or

unenforceable.

By : _________________________________ By: ______________________________________

Date: ___________________________________ Date: ______________________________________

This is a worker's comp waiver that Penn State uses apparently as a standalone agreement. This is integrated in my contract:

FOR WAIVER OF WORKERS’ COMPENSATION INSURANCE REQUIREMENT

Individual’s Name:______________________________________________

Business Name (D/B/A):_________________________________________

Address:_____________________________________________________

_____________________________________________________

I,____________________________________, hereby request that_________________________________

__________________________________ waive the requirement that I carry Workers’ Compensation and Employers’ Liability insurance in order to engage in business with the University. This request is for the following reasons:

1. My business is a Sole Proprietorship, Partnership, or Limited Liability Company (LLC), and I have not purchased voluntary Pennsylvania Workers’ Compensation insurance;

2. I agree to be responsible for any injuries to myself or persons employed or otherwise engaged by myself or my business for the purpose of completing the obligations contained in the referenced job/contract;

3.In consideration for the requested waiver, I agree to indemnify and hold harmless The Company from any and all claims for bodily injury, including death, and disability brought against The Company or its officers, employees or agents by myself and/or persons employed or otherwise engaged by myself and my business, related, directly or indirectly, from my business with The Company. I also agree that I, persons employed or otherwise engaged by myself and my business will not seek Workers’ Compensation and Employers’ Liability claims and benefits from The Company’s Workers’ Compensation and Employers’ Liability programs.

Agreed to by:

__________________________________________________ ____________

Signature Date

Thanks for those.