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Workers Comp question
Hello,
I currently own 36 rental homes. To add an extra hedge of protection and picked up Worker's Comp.
Couple questions:
If you have a sub do any work should you make sure they show a workers comp insurance plan?
Should you 1099 everyone?
My insurance company is treating all companies who I did not 1099 and cannot produce a certificate of liability as an employee. Basically I've got to pay a percentage into the workers comp plan for their services. The certificate of liability needs to be the workers comp coverage.
A recent audit indicates I'll have to pay workers comp for about $40,000 in wages as I cannot produce Certs and 1099s.
Anyone dealing with some similar situation? Thanks greatly appreciated!
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Jason Bott
#2 Insurance Contributor
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#2 Insurance Contributor
- Insurance Agent
- Nationwide
@James Feiden This is how all work comp policies are set up. Your policy covers all employees & 1099 subs unless the subs have a work comp policy to take the place of your policy.
Your agent should have warned you of this as it is a very common issue for any business dealing with subcontractors.
Your subcontractor agreement should detail the work comp requirement. If you do not have one, let me know. I had a Subcontractor agreement written specifically for my WI & IL landlords to use.