My Contractor Wants to Use My Backhoe

[PHIL850]

You may want to consider the issue of liability if your contractor or one of his workers gets hurt while using your backhoe. My insurance company pointed this out to me when I was having an addition built by a GC. They told me NOT to loan out any of my tools for this very reason.

 

[Doc_Bob]

I am inclined to let him (but no one else) use the backhoe, if we get a written agreement on the damage issue, and if he will limit the use to less than 10 hours on the tach every two weeks. This will let me maintain the grease schedule myself, which I do not trust anyone else to do. I might have to buy an electric grease gun -- tragedy.

When he dies or is seriously injured using the BH, will your insurance cover you?
Bob

 

[CurlyDave]

When he dies or is seriously injured using the BH, will your insurance cover you?

I think that is another thing to check. I sure hope so. I have general liability and personal articles specifically on the backhoe, and an umbrella policy on all my insurance. It isn't legally a motor vehicle and in a lot of ways I wish it was. Then insurance would cover anyone I lent it to.

Dave

 

[MarkV]

Dave, insurance has been mentioned by others and what I think you will find is that if he uses your BH you just passed over the line from homeowner equipment to commercial equipment. It’s an easy definition; he is making money while on the tractor so it is commercial. Now when I was buying insurance for a BH it was very shocking how mush commercial insurance cost. Backhoes and things like fiber optics, gas lines and underground eclectics make for big premiums. You need to check and look at the possible issues. By the way, I suspect you would cross the insurance line even if you were operating the tractor on you own property if it were being used as part of a commercial project.

That said, I would most likely do it if I trusted the guy and set some ground rules. Personally I can’t live my whole life worried about worst case scenarios.

MarkV

 

[KennethBrown]

We're in the process of building our own house right now also. While we are our own GC we were really worried about liability. After talking to my insurance agent I'm relieved. He said as long as I don't loan them anything that they get hurt on I'm not liable. That being said 2 of my ladders are being used by my framer. I trust him, and he trusts me. Even today in this politically correct world you NEED to trust somebody, I chose my builder.

 

[CurlyDave]

OK, I talked to my insurance agent, and I am not covered for my contractor's use under my policy. However, he has a liability policy which covers anything her does while working, and all insurance agents agree this provides liability coverage for the backhoe while he might use it.

As far a him having an accident and hurting himself while using the BH, I am getting a letter from him agreeing to indemnify me against all claims.

This should put it to bed.

I am at the jobsite very two weeks, and the grease intervals on the BH are every 10 hours. I doubt he will put more than 10 hours on the tach in two weeks, so I am going to grease the BH myself every time I am at the site. This is not a big deal, since I already change the oil in my generator every time I am there, just to be certain it gets changed on time.