Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Generally speaking (and the rules are very similar throughout the US), a business owner must have Workers Comp if he has any employees. You need to verify this.
If he is truly a one man game, then he does not need WC to operate. But if he hires any sub-contractors, then they need to have WC. You need to verify this as well.
If someone has a 'helper' on your property (and no WC) and they fall and injure themselves, then you will get sued for damages.
Does anyone know if a workers compensation insurance is needed when hiring a handy man to help. I am in the State of FL.
Thank you,
I do about 150- 175k a month ( yes a month ) in repairs and reno's. My handymen, change a door , replace a P trap snake a drain, all minor items, I do not care if they are insured. My GC'S is a different story all are insured
It seems you are confusing Workers Comp Insurance with Liability Insurance. It's true that a Handyman on a small job does probably not need liability Insurance, but if they bring a helper along and he falls off a roof, you'll be left holding the bag if he does not have Worker's Comp...
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
3y
Luz,
You need to talk to an experienced Agent in the state where the work will be done (Workers Comp. laws are state specific). Even if you pay someone via 1099 or just cash, you could be considered to be their employee under the workers comp. laws. They have a multiple factor test they use. Some of the factors are:
1. who controls the work
2. how is the person paid (if it is Hourly, Daily, Weekly, watch out)
3. does the person have their own insurance for workers comp
4. does that person work for anyone else
5. Is there a contract
6. Did they invoice you for the work
7. Who supplied the tools and materials
Based on those (and other tests) the State Workers Compensation Board will make the determination of whether or not the injured person was an employee (at the time of the loss) under the state workers comp. laws.
I had a client that allowed a tenant to do some work on the property to work off some back rent. That person put in a claim to the state workers comp. board claiming they were injured as an employee. The client did not have their own workers comp. because they did not believe they had any employees. The client had to pay for the Attorney to fight the claim.
My advise is not to let anyone work on your property unless they have workers compensation coverage. It will push up your costs but prevent a claim you were not expecting.