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Re: Worker's Comp Problem!!!!

If your contractors or 1099 guys have their own liability policy...Then you should in no way shape or form be liable for any work comp for them or for any claim they may have.  They as contractors are liable for themselves.  The MSO or some primes require you to have a piece of paper stating you have comp.  Or as my agent calls it "Dummy Comp".  In other words, there for paperwork purposes only.  That is why the insurance company only needs to have your 1099 guy's certificate of insurance (each individually).  If you are having these guys work for you without having any liability insurance than you are at risk of comp claims and then you are in fact billable for these guys "exposure".  For installers the insurance certificate for each of these 1099 people should only run them $40 or so per month and then you have no liability what-so-ever.

With them carrying their own certificates, then this also cleans up your write off or tax liability.  On my yearly comp audit they ask directly: How much did you pay out in cash to those who had no certificate?  i.e. 1099 people.  If you have to answer this as all of the cash went to those without certificates then you are responsible to pay comp which is a percentage of the whole amount. 
This is CABL.com posting #287739. Tiny Link: cabl.co/mbm07
Posted in reply to: Re: Worker's Comp Problem!!!! by SouthernSkyLLC
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