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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114713
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Hello, I would like to start a business that employs Independent

Resolved Question:


I would like to start a business that employs Independent Contractors to work from their home making telephone calls. Other than the "norm" of setting up an LLC, EIN and having them fill out a 1099, do I have to get any other type of "licenses" and most importantly, do I have to purchase liability insurance, workers comp, etc?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
If they are independent contractors and working from home and are able to work as they please, then you do not need workers compensation insurance and you do not pay unemployment. As far as liability insurance, there is nothing needed if all you are doing is making phone calls. Just the obvious that you mentioned already is all that is required.

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Customer: replied 5 years ago.
what if the Independent Contractor's work at my clients' businesses?
Expert:  Law Educator, Esq. replied 5 years ago.
If they are independent contractors and not employees, then workers compensation is not needed.
Customer: replied 5 years ago.

Thank you for your prompt response. Sorry; I'm still trying to learn this system and my computer said you were still "working on my answer" so I just saw your response. I understand I won't need work comp ins. but what about General Liability? Since I'm just starting this biz I'm really scared about the fact that if I hire an Independent Contractor and they're working at a client's office they can sue me if they get a paper cut. I've been told that in order to insure against something like this costs an arm and a leg in Gen Liability (the person telling me this is someone trying to "partner" w/me and the only thing he's bringing to the table is the Gen Liab Ins). Thanks, XXXXX XXXXX for any/all advice you can provide.

Expert:  Law Educator, Esq. replied 5 years ago.
You said they are independent working from home making phone calls, not working in client's offices, but either way if they are independent contractors, you only need insurance to indemnify you for any damages that may occur if they are on a client's property and this is just general liability insurance.
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