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I am interested in becoming a distributor under a newspaper…

Customer Question
I am interested in...

I am interested in becoming a distributor under a newspaper company.This company is saying I would have to carry commercial general liability insurance of 5,000,000 workmanship comp of 1,000,000 as well as100,000 accident insurance and comprehensive auto liability of 2,000,000 each accident and 4,000,000 aggregate.I would be a subcontractor distributor as well as 12 subcontractors working under me to prepare news papers for delivery in one central location that is a leased building that I would pay only a portion of the lease on the building.am I required to purchase all of this insurance as a subcontractor wouldn't that make the people under me employees.

Lawyer's Assistant: When we are ready I'll take you to the appropriate web page.

Am I required to get commercial liability insurance and workmans comp insurance and accident insurance as well as comprehensive auto liability insurance if I am a subcontractor/distributor for a news paper company with 12 subcontractors working under me coming to a leased building to prepare their papers that I pay partial payment on the building and 12 carriers leave and deliver papers in their own vehicles.

Lawyer's Assistant: Is there an ownership agreement in place? Have you reviewed all the terms?

No I would be only a distributor/subcontractor working under Bay Area news group if I take the job

Lawyer's Assistant: What state are you in?

California

Submitted: 8 months ago.Category: Business Law
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Answered in 2 hours by:
8/5/2017
Business Lawyer: Alex Esquire, Attorney replied 8 months ago
Alex Esquire
Alex Esquire, Attorney
Category: Business Law
Satisfied Customers: 16,808
Experience: Experienced Licensed Attorney
Verified

Hello. My name is ***** *****

Thank you for your question.

I will be happy to provide you the information you are seeking for educational purposes only.

Is the company that you are interested to become subcontractor for require you to obtain and carry all the insurance coverage you have described in your question?

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Business Lawyer: Alex Esquire, Attorney replied 8 months ago

Thank you for your follow up.

Unfortunately, it is perfectly legal for a company to require a subcontractor to carry certain insurance coverage and limits, regardless of whether such insurance coverage and limits is required by law and if the subcontractor is unwilling and/or unable to carry such required insurance, then the company has the right to decline to work with such subcontractor.

I wish you the best of luck!

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Business Lawyer: Alex Esquire, Attorney replied 8 months ago

Please let me know if you have any related follow up questions?

If not, please positively rate and accept my answer, so I can be compensated for my work.

Thank you.

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Alex Esquire
Alex Esquire
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