As a Professional Organizer, you coordinated a junk removal service for your client. The hauler’s truck cracked the client’s heated driveway ($15,000 damage). The hauler has vanished and has no insurance. The client sues you because you hired him.
Key Takeaways
- Vicarious Liability: You are responsible for subcontractors you hire. If they are uninsured, you are the primary insurer.
- Hired/Non-Owned Auto: Your GL policy covers you. It typically excludes auto accidents. You need “Hired and Non-Owned Auto” coverage to cover damage caused by vehicles you hire (like the junk truck).
- COI Tracking: You must collect a Certificate of Insurance (COI) from every sub. If you don’t, your insurance audit will charge you premium for them, and you carry their risk.
- Contract Privity: Did the client pay you or the hauler? If they paid you, the hauler is your sub. If they paid the hauler directly, you are just the referrer (less liability).
The “Why” (The Trap): The General Contractor Trap
Organizers often act as “Project Managers.”
The Trap: When you take payment for the junk removal (
500)andpaythehauler(500)andpaythehauler(
400), you are legally the General Contractor. The hauler is your sub.
If the sub destroys the driveway, your General Liability policy might deny the claim because “Auto” is excluded, and you didn’t buy “Hired Auto” coverage.
The Investigation: Subcontractor Liability
I audited how carriers view “Organizers who hire.”
1. Hiscox
- My Analysis: They ask: “Do you hire subcontractors?”
- The Rule: If yes, you must ensure they have GL limits equal to yours. If not, Hiscox might deny the claim or drop you.
2. Progressive Commercial (Auto)
- My Analysis: You can add “Hired & Non-Owned Auto” (HNOA) to a GL policy.
- The Benefit: This covers the driveway damage caused by the truck you hired.
3. Referral Model
- My Analysis: The safest route.
- Strategy: Have the client pay the hauler directly. You are no longer the “Contractor,” just a consultant. Liability shifts to the homeowner/hauler.
Comparison Table: Hiring Models
| Model | Who Pays Hauler? | Your Liability Risk | Insurance Needed |
| Subcontracting | You | High (Vicarious) | GL + HNOA + COI |
| Referral | Client | Low (Negligent Referral) | E&O |
[IMAGE: Graphic of a ‘Subcontractor Insurance Agreement’ template]
Step-by-Step Action Plan
- Shift to Referral: Stop paying haulers. Hand the client the invoice and let them pay.
- Get HNOA Coverage: If you must subcontract, add “Hired and Non-Owned Auto” to your policy ($150/yr).
- Verify COIs: Never let a truck on the property until you have a PDF of their insurance in your inbox.
- Driveway Waiver: Have the hauler sign a waiver acknowledging driveway weight limits.
FAQ Section
Am I liable if I just recommended him?
Yes, for “Negligent Referral” if he was known to be incompetent. But it’s harder to prove than if you hired him.
Does my policy cover the truck rental if I drive it?
Yes, if you have Hired Auto coverage. Personal auto insurance denies large box trucks.
What if the hauler hurts my client?
You will both be sued. Your GL defends you; his GL defends him (if he has it).