Liability?

[Pap_sak]

If I let someone work in my garage and use my tools, but hurts himself, I am guessing I would be liable? Even if he is not employed by me and I am just letting him use my tools as a favour? What about if I make him sign I letter stating I cannot be held liable?

Soon I will be taking very early retirement at 40, but from then on have to really guard what little capital I have - certainly do not want "being a nice guy" to bite me in the ass...

[AndyD]

Can't believe you let people in your garage to use your tools.

[Pap_sak]

Well, haven't as yet. But thinking I might team up with a guy to make some small projects - nothing serious, but some pocket money. I do not know the guy very well, but he seems like a good guy and really wants to work with his hands. This guy though seems to have nothing in assets - and I mean nothing, not even a car. I am kind of worried that if he chops his hand off I will be the one footing the bills....

[Beancounter]

Your insurance should cover it under public liability but make him sign an indemnity form anyway. Stranger things have happened and people tend to go the USA way and sue for anything.

[HR Solutions]

Well, haven't as yet. But thinking I might team up with a guy to make some small projects - nothing serious, but some pocket money. I do not know the guy very well, but he seems like a good guy and really wants to work with his hands. This guy though seems to have nothing in assets - and I mean nothing, not even a car. I am kind of worried that if he chops his hand off I will be the one footing the bills....

I would be more worried that he has nothing to his name, and you do have things to your name and you would not want to add tools to his name without you knowing. I have also been caught by the "he seems like a good guy" thing .......... and am very wary of people until I really build up a trust.

[Pap_sak]

Cheers for the input guys. I think personal liability would cover an accident if we where making items for ourselves, but I am sure they would wriggle out of it if there was even a hint of making items for profit.

I'll see where it goes - I am one of those guys that always see's worst case scenario's everywhere - I should learn to relax a bit.

[sterne.law@gmail.com]

Sign agreement that sets out true nature of relationship.
Workmen comp has a presumption of employee rider.

Liability is based on negligent and reasonable forseeability.
Make yourself comfortable that he knows how to use tools, check Cv, track record or get him to say he is an expert.
You have to make sure you show due care.