I have a 10 unit building in Santa Monica. No employees apart from a gardener who is self-employed. Do I need workers comp insurance? Already have apt owners insurance through State Farm as well as a commercial liability umbrella policy? Will I be covered if a plumber or handyman without their own insurance policy is injured at my building? Or better yet, what if I reimburse one of my entitled rent control tenants to paint their apt and they 'slip and fall'....
Regarding work comp - anyone helping you at or on your 10 unit complex, be it employee, independent contractor, volunteer, or site manager, will most likely have the right to file for work comp benefits if they get hurt.
Regarding your tenant. Is the tenant painting because she wants to & you are just paying for the paint? If you asked her to paint, you better go out and get that work comp policy.
Yes, I am simply paying for paint as the tenant wants to paint, I am not asking them to. Thanks.
Your not going to be pulled into court for buying her the paint. But you are still open to uninsured contractors. You can do 1 of 2 things to handle the situation.
1) get a work comp policy with $0 payroll. It will cost you a few hundred per year. this policy will then pick up any uncovered contractors. BUT, you will owe insurance premiums on all of these contractors who do not have their own coverage.
2) Make sure you get proof of work comp and general liability coverage directly from the contractors insurance agent prior to each project/job.
*If you like to hire for cash, it still may be cheaper to use strategy #1 then ask each cash contractor to go out and buy the coverage then charge you back for it. You just need to put a pen to pad to figure this out. good luck
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