Workers Compensation For Contractors

 
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Old 09-09-2017, 11:59 AM   #1
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Workers Compensation For Contractors





Workers compensation is overlooked by most contractors in the fact that it is illegal not to have it for your employees in every state but Texas. (There is a workersís comp system and rules in place for Texas: http://www.twc.state.tx.us/news/efte...pensation.html.)

A lot of employers overlook the way workers comp is billed: Your actual rate isnít known until after your audit. That means the down payment is more like a deposit, and if itís too low, itís all due at the end of the year. Here is a good summary of Workers Comp insurance for contractors.

3 Levels of Coverage

a) 100,000/$500,000/$100,000
b) 500,000/500,000/500,000
c) $1,000,000/$1,000,000/$1,000,000

For all three levels of coverage, the first number represents the maximum per employee for disease. The second number represents the policy limit they will pay out for diseases. The third number is how much the company will pay to any single employee in the event of an accident.

These coverages only apply if the owner/manager negligently causes an injury to one of its workers. A good example of this is if they knew there was asbestos in a building and had workers in there anyway. Also, if you purposely trip someone and they fall from a ladder, the employee would have a very strong claim.

Do I need to buy workers comp for a subcontractor?

As long as they have the right insurance, no, you do not. You do need to obtain a certificate of insurance (COI) from your subcontractor showing they have the right insurance in effect for the entire time they are working for you. You must be named as ďadditional insuredĒ on their policy. If you do not have a certificate of insurance naming your company as an additional insured, you will be charged the appropriate rate for the scope of work the subcontractor is doing (i.e., roofing, plumbing, landscaping, etc). Without a certificate of insurance your subcontractor is considered uninsured.

What if they donít have insurance?

An uninsured subcontractor, or one who cannot provide you with a certificate of insurance, is looked at as being an employee. You will be billed according to what you pay them. If you can prove you paid that subcontractor for parts, it is possible to deduct the parts from of the total you paid them to come up with the rate you will be billed for. Keep careful records. This can be a massive cost and should not be overlooked.

Before You BidÖ

You need to bill your customer for the cost of workers compensation for uninsured sub-contractors and employees in your labor bid. If you win a contract by estimating without that cost, you need to be militant about collecting certificates of insurance. No COI = No Check. And remember, you have to be named as additional insured.

Donít get thrown in the pool!

This is your responsibility. If it isnít done right, you will get burned at the audit. If you do not have enough money to pay your audit they will cancel your insurance. If you get cancelled, you can lose any discounts you have, and sometimes not be eligible for reinstatement. That will put you back into the pool, which is a 30% higher rate.

If you have any more specific questions, drop them here in the comments. Or if you want a licensed professional to look at your overall insurance rates to make sure you arenít over paying, give us a call. We are here to help.
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Old 09-09-2017, 05:34 PM   #2
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Re: Workers Compensation For Contractors


he should be ok..he had his hat and vest on..

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Old 09-09-2017, 06:06 PM   #3
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Re: Workers Compensation For Contractors


Shame on him...no drop cloths.
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Old 09-13-2017, 11:13 PM   #4
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Re: Workers Compensation For Contractors


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Originally Posted by ContractorsLiability View Post
These coverages only apply if the owner/manager negligently causes an injury to one of its workers. A good example of this is if they knew there was asbestos in a building and had workers in there anyway. Also, if you purposely trip someone and they fall from a ladder, the employee would have a very strong claim.
Workers' compensation liability, at least in Oklahoma*, applies to all accidental injuries that occur in the course and scope of employment, whether the employer/owner/manager is at fault. Even if the employee is negligent, he/she can recover so long as he/she did not intend to cause the injury (or death) or intoxication played a role in the injury.

http://www.oscn.net/applications/osc...?CiteID=471449

Also, be sure to check for certificates of insurance BEFORE any sub steps onto the job site. Make a copy of the certificate and keep it in a safe place. For maximum safety, call the issuing insurance company (not agent) and verify the coverage is current and valid.

*I am not allowed to comment on laws of other states
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Old 09-14-2017, 08:55 PM   #5
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Re: Workers Compensation For Contractors


looks that way!
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Old 09-14-2017, 08:59 PM   #6
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Re: Workers Compensation For Contractors


thanks...sounds like you've been remodelling for a while now. Ever do any tornado damage repair?
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Old 09-14-2017, 10:56 PM   #7
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Re: Workers Compensation For Contractors


I can tell by his pasty baby-like hands he has never worked a day in his life. Bad casting!

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Old 09-16-2017, 04:49 AM   #8
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Re: Workers Compensation For Contractors


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thanks...sounds like you've been remodelling for a while now. Ever do any tornado damage repair?
I was doing something else when the big tornados blasted through Moore several years ago.

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