workman's comp insurance question

[kalvix]

So i have a workman's comp insurance for over a year and we are being audited and being asked to provide information on ALL of our contractors and their proof of both liability and workman's insurance. If they have workman's comp then all is good, but if they don't have workman's comp we have to pay our sign installer rate (somewhere on the order of 5.25 per 100) for the contractors as well as our employees.

I have been told this is standard practice for workman's comp to make sure that everyone is covered and since my company is paying them they need to bear this burden of insurance. seems like a pretty steep 5% tarriff.

now my question, how do you guys handle this, just pay it or get your contractors to have their own policy? my contractors (who also work for other people) tell me that no one else asks for this information.

Thanks

 

[Gino]

Sounds like your installers are a fly-by-night operation.

In order for you to contract them to do ANY work for you, they must provide to you a 2 or 3 million dollar policy. That, in turn goes, in along with your permit for jobs needing these people. Without it, you're operating 100% illegal. I'm surprised when getting permits, you were never asked any of this..... of course, I am under the impression, you are getting permits.


Just think about it...... one of these guys falls off a ladder and hurts himself to the point he can never work again. If he has no insurance/comp, you'll be paying his way the rest of his life, cause you told him to go out and do that job without having proof he was covered. Now, let's go a step further and this guy falls off a ladder and drops his hammer drill on someone's head that was nearby the installation. It kills that pedestrian. Now, who do you think is gonna foot that bill ?? As long as you skirted the issue and got away with it..... fine and dandy, huh ?? But, if/when the sh!t hits the fan, you'll be the one holding that proverbial paddle in a stream.

Consider yourself very lucky you got caught before something terrible happened. You can now pay the fines or premiums and get these guys in the know.... or look for somebody else who won't get you in trouble.

 

[kalvix]

Hi Gino,

thanks for the feedback, but i beleive what you are talking about is addressing liability as opposed to workman's comp. they carry liability which is what is asked for during permitting and what i carry for jobs. i'm trying to see if people require their contactors to get their own coverage vs. simply cover them under their own policy.

 

[Billct2]

If they're self employed they don't have workers comp.

 

[Gino]

Sorry, I thought you were asking about both, since you said.... provide information on ALL of our contractors and their proof of both liability and workman's insurance

If they are a sole proprietorship, then they don't need workman's comp as mentioned. If they have employees, then I don't know why you'd have to provide it, but if that's what they're asking, then you better find out from your accountant and attorney.

 

[kalvix]

my auditors say that even self employeed need wc insurance.

 

[sigsignman]

the owner of the business is allowed to "exempt" himself only; however, if the "owner" is on a ladder and falls - goes to the emergency room the owner is going to have to "foot the bill". Personal insurance isn't going to do it....just a thought. I hate those audits! I do use a payroll company - Paychex which does make it easier - they just down load all the information and qualify who does what skill. Good Luck!

 

[Billct2]

I thought I wasn't eligible for comp. But after looking at the regs for our state (it varies by state) I see that I could be.
I'm going to have to question my agent about this. I carry disability on myself which is pricey but covers me for any type
of problem not just work related but it' s not a deductable expense. I wonder if comp would be? Looks like I got a call to make.

 

[gnemmas]

Subs should provide both liability & workers comp insurance info to us, just as we need to furnish it to our customers.

Worker's Comp insurance is the largest rip-offs.

It should just be the "Compensation" for lost of work or disability compensation. As for medical expenses, health insurance is already covered.

If worker has health insurance, Workers Comp should just charge for Disability Compensation, instead of double cover for Medical treatment.

What's the difference to the hospital if I break my leg in backyard or in the shop?

 

[visual800]

Im a single guy and I have to carry it to do state work like universities and hospitals. I hate paying it but if I dont I dont get to bid or work for a good bit of companies. Its nothing but bueracy at its finest. Bs and red tape.

you need to require them to have it or you will look elsewhere or start doing some creative thinking

 

[Laz0924]

So i have a workman's comp insurance for over a year and we are being audited and being asked to provide information on ALL of our contractors and their proof of both liability and workman's insurance. If they have workman's comp then all is good, but if they don't have workman's comp we have to pay our sign installer rate (somewhere on the order of 5.25 per 100) for the contractors as well as our employees.

I have been told this is standard practice for workman's comp to make sure that everyone is covered and since my company is paying them they need to bear this burden of insurance. seems like a pretty steep 5% tarriff.

now my question, how do you guys handle this, just pay it or get your contractors to have their own policy? my contractors (who also work for other people) tell me that no one else asks for this information.

Thanks

This is standard practice by insurance companies, sometimes if I need the guy I'll foot the bill and figure it in to my costs. I have had contractors that I did work for not release payment until I provided proof of insurance.
You can do it either way or let them know up front that they will need to provide an insurance certificate if they want to work for you. One other note not everybody get audited every year depends on the insurance company, I have had some audit every year and others don't that may be why your subs are claiming it hasn't been requested of them.