plumber (sole owner) does NOT have a worker's compansation
My wife and MIL own a small flooring company here in CA. We are licensed, bonded, and carry liability insurance but not WC. WC is only to cover an employee of the company if they get injured on the job.
As the owners of the company, they are going to take care of themselves if they get injured, and obviously not go after the company. Example, if the plumber dropped the water heater on his foot, he will take himself to the doctor, use his own medical, and is not going to sue the company (himself) for damages, so no need to carry WC. Don't be concerned, you will not find ANY sole proprietorship, or any small company that does not have employees other than the owners, that carry WC. There is no need and it is EXPENSIVE
Liability insurance is to cover the contractor if he does something to you or your property. Example, if the plumber drops the water heater on YOUR foot, or it falls on your car, his liability insurance will take care of it.
Now, if the plumber gets hurt on your porperty due to a problem with your property, he can go after the homeowner, and that is what homeowners insurance is for. But in order to actually go after a homeowner and have a snowball's chance of winning, it has to be a blatent pre-existing issue. Example, tripping on a stair - forget it, but falling because a step was missing completely, might be a case.
Last edited by FixitDragon; 03-15-2012 at 01:17 PM.