Uninsured Subcontractors
Subcontractors are great for business. They help you get
work done that might not be your specialty. You also don’t have to worry about
paying their taxes or paying for benefits. Sounds good? Let’s get some
subcontractors on board!
What’s the disadvantage of using subcontractors?
Some subcontractors don’t have insurance. That’s a BIG NO NO! Sometimes it’s difficult to
make the distinction of when this person is a subcontractor or if they’re
actually an employee. This distinction can have major financial
implications. If the State determines that the person working for you is actually an employee, they would be
entitled to Workers Compensation benefits under your policy if they are ever injured on the
job. Other factors such as the time of the injury and the employer requirements
of the contractor will also determine the workers’ rights. Carriers may also cancel your
policy for using subcontractors without insurance as they are now insuring your subcontractor as well as
you. They would prefer that you provide certificates of insurance for
your subcontractors during your annual audit.
Reiner Insurance is a full service insurance agency writing
all forms of insurance including Liability, Workers Compensation, and
Commercial & Personal Auto, Homeowners, life and health insurance. We are
an independent agent representing many insurance companies.