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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10629
Experience:  30 years of corporate, litigation and international law
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My company is a 3-person partnership -- my husband, me and

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My company is a 3-person partnership -- my husband, me and a friend. We are flipping houses. My husband and I put up the money, our friend and I do the work (the friend does the majority of it). We're finding it very difficult to hire part time labor because no one has liability insurance. Our insurance guy offered us "if any" workmens compensation insurance. If we hire someone who doesn't have his own liability insurance, and someone makes a claim, this insurance kicks in. The insurance company would do an audit each year to find any contractor who could be classified as an employee, and then I'd have to pay premiums on any that they classify this way. It gets expensive fast. The first "employee" is $1k. Each thereafter is a percentage of their "wage."

Is this the only way to protect the business from worker claims? We'd prefer to not have employees as that has a huge host of problems. But we can't always get contractors who have insurance when we just need $15/hour labor for a week or two.

What's the best way to protect the company?

bizlaw :

Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. What I suggest is contacting temporary agencies who supply temporary construction workers to see if they cover the part time person under their policy while working for you on a temporary basis. It will cost you more than a direct hire but probably less than getting your own coverage. You would have to check in your area as I would not know if temp agencies in your area have that insurance for their own people. I did see this site so you might check with them.

bizlaw :

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Richard - Bizlaw and other Business Law Specialists are ready to help you
Hi I was just following up to see how you made out. If you have any additional questions or I can help on a different topic let me know.