Ms. Walker* was walking along a public sidewalk to a restaurant where she often had lunch when she fell to the ground in front of ABC Agency's building. Looking out her office window, Ms. Smith, executive director of ABC Agency, saw a lawn mower operated by the landscaping service throw a rock that struck Ms. Walker in the face.

Ms. Smith rushed to Ms. Walker's side, called 911, and later visited her in the hospital. Ms. Smith, working in close cooperation with the claims adjuster, arranged for Ms. Walker's medical bills to be paid. Ms. Walker never hired an attorney and never filed a claim. She still walks past ABC Agency on her way to lunch.

Why was ABC Agency responsible? The landscaping service had no liability insurance. Ms. Smith told the risk management consultant who later visited ABC Agency, "Today, we have a new landscaping service that is a real business and supplies us with certificates of insurance. This will never happen again!"

Make sure your contractors have insurance. Consult your insurance agent or broker for guidance.
 
*This article is based on a true story. Names of individuals and businesses have been changed.