If you're currently remodeling or renovating your home's electrical system, you may be acting as your own general contractor -- hiring an electrical subcontractor to perform substantive installation and finishing work. Although an electrical contractor should carry worker's compensation and other types of insurance that will cover employee injuries, you could still be personally sued if one of these workers is injured on your property. Read on to learn more about how to insulate yourself from potential liability for electrical subcontractor injuries that occur on your property.

Who is responsible for subcontractor injuries on your property?

This can be a tricky question. Although one of the advantages of serving as your own general contractor is the ability to direct the work of the subcontractors, with this autonomy you take on some additional risk. If you or your subcontractors don't carry adequate insurance coverage for any injuries sustained at your home (or damage to your home), you may find yourself on the hook for medical bills or repair costs -- even lost wages.

Although electrical contractors are trained, experienced professionals, they can still undertake an enormous risk every day they arrive at work. Even low-voltage installations can cause injury, especially if a contractor falls or hits his or her head after receiving a minor electrical shock. And depending upon the type of insurance held by the employer, this injury could be classified as non-occupational if it resulted from a fall or secondary shock rather than a direct contact with injuring voltage. 

In many cases, a homeowner will not be held liable for contractor injuries on his or her property, even if the contractor wasn't carrying proper liability and workers compensation insurance. In these cases, the contractor or company will be sued individually and a judgment for any medical bills or other damages will be entered. However, in other cases, a homeowner may be liable -- and even if you are eventually determined not to be at fault, you may be out any of the legal costs it takes to defend yourself.

How can you protect yourself financially from subcontractor injuries?

Even within the safest work area, accidents can happen. Fortunately, there are a few ways you can protect yourself financially.

• Check your homeowners insurance

In many cases, your homeowners insurance may help cover any claims against you based on an employee's injury while working at your home. Check your policy carefully, and contact your insurance agent if you have any questions about what is covered. It is always best to be proactive in these situations to ensure that you're covered before a problem arises.

• Check your subcontractor's insurance

Your subcontractor should carry its own liability and workers compensation insurance that will help pay for injuries employees suffer while on the job, as well as any damage to your home. For example, if an electrical contractor causes a short in your power grid and you need to purchase a new set of fuses, this cost should be covered by your subcontractor, rather than your own homeowners insurance.

• Purchase umbrella insurance to cover any gaps

An additional protection may be available through the purchase of umbrella insurance. This insurance will help fill in any gaps in your homeowners policy, and can also protect you against claims that aren't specifically home-related. For example, if you are unsatisfied with the contractor's work and post a negative review online, the contractor may choose to sue you for libel or slander. Your umbrella insurance policy will not only pay to settle this case (if a settlement is necessary), but can cover your legal bills incurred in defending yourself.