Many insurance companies, including Old Republic Home Insurance, work with independent contractors. The insurance company sends these professionals to the insured’s home to repair the effects of:
However, if a contractor behaves unprofessionally or causes damage, the customer loses confidence in the insurance system itself. Although insurers claim that they are not liable for the actions of third parties, practice shows otherwise. If a company selects a contractor without due diligence and ignores obvious risks, it can be held liable for negligence.
Under California civil law, negligent hiring occurs when a company fails to exercise due diligence. Even though it had a duty to do so. For example, if the contractor:
But was hired to do the work anyway. Recent cases, such as Doe v. Uber Technologies, Inc. for damages caused by performers when they fail to provide the proper screening process. This applies not only to transportation services, but also to the insurance industry.
The platform economy model assumes that large companies only act as intermediaries between performers and customers. Such an arrangement is convenient and reduces costs. But it creates a legal vacuum.
Old Republic Home Insurance, by contracting with contractors, cannot absolve itself of its duty to vet them. This is confirmed by materials published by Cornell Law School which states that negligent screening is an independent cause of action.
In order to prove the insurance company’s liability, the injured person must prove that:
For example, if a contractor damaged electrical wiring that caused a fire, a claim could be made against the insurance company. Citing negligent supervision and lack of proper inspection.
If you have been injured by a contractor referred by Old Republic Home Insurance, you should contact an attorney immediately. He or she will help you to:
In addition to going to court, clients are advised to file complaints with the California Department of Insurance. Which regulates insurance companies.
Insurance company representatives often rely on the fact that contractors act independently. However, this in no way relieves them of liability. If the company itself selected the contractor and controlled the progress of the work. It is also important to note that companies can claim that the damage was caused by the client’s own fault.
However, practice shows that courts carefully examine the context:
If the insurance company knew of the risks but ignored them, it will be at fault.
To reduce the risk of lawsuits, insurance companies should:
It is also advisable to include indemnification clauses in contracts with contractors. in the event of lawsuits related to their actions.
There have been cases in California where courts have found insurance companies liable for the actions of substandard contractors. For example, in a Los Angeles case, a client was seriously injured when a ceiling repaired by a contractor collapsed. The court found that the insurer failed to verify that the contractor had a construction license and awarded more than $250,000 in damages.
This situation illustrates the importance of not only entering into a contract, but also being held accountable for its performance. Make sure contractors have the proper paperwork and licenses to protect other people from getting hurt. It is also important to realize that a contractor’s negligence may be the basis for a civil lawsuit. As discussed in the KAASS LAW article.
Old Republic Home Insurance, like other insurance companies, has a responsibility to protect its customers. Not just on paper, but in reality. Failure to properly vet the contractors it works with can result in:
Victims should not face defenselessness or silence. Contact KAASS LAW if you have been in a similar situation where you have suffered because of an unlicensed contractor. Having evidence of negligence in hiring contractors can be an important factor in successfully recovering compensation.
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