Insurance for Independent Contractors?
If I hire on Independent Contractors for a housekeeping business do they legally HAVE to have their own liablilty insurance? If they sign a contract stating they are responisble for this does this protect me even if they do not get insurance?
I'm not aware of any statutory requirements for a janitorial company to have or retain General Liability insurance. You might want to have a paralegal or attorney research that one, it probably varies from state to state.
I know contracts can and do stipulate insurance requirements. Depending on the relationship involved it may afford you some protection. In the event that damage occurred you would be left with the task of chasing the company that did any damage.
If you are trying to protect your personal possession's and privacy follow due diligence by requesting a Certificate of Insurance from any independent contractors you are considering. Request that you be named as additionally insured on the certificate.
You should also check if they are covered for workmen's compensation on the Certificate of Insurance. If they are injured while working at your home or business and they are not covered you may have to file a claim with your own insurance or you may be held personally responsible if your insurance will not cover it.
Nope, you're ultimately responsible if your subcontractor is uninsured. That goes for general liability, AND workers compensation. Yep, just giving them a 1099 form does NOT get you off the hook for paying medical costs and lost wages, if they are injured.
Getting them to sign something saying they are responsible, will generally not hold up in court, as it's "against public interest". You can't get someone to agree that you aren't responsible for something the law says you ARE responsible for, particularly if it's workers comp or liability.
Additionally, if you don't have a certificate of insurance from them, when YOUR gl and or workers comp policy is audited, whatever you paid them will be considered PAYROLL, and you'll see an additional charge on your audit for it. OUCH!
Answers:
if the contractor enters into a contract you should always ask for a contractors license or a business license. that way you protect yourself from fly by night operators.
i would assume you are worried about damage done to your house or tax liability - both are in order if they have a license.
i hope this helps.
I owned a plant company in CA. Used gals to water and had a long disclaimer/contract which seemed to work. Your problem might be theft which is a BOND issued by insurance companies.
You need to protect yourself from negligence of others . When you hire someone you should require evidence that they carry General Liability ins. NO they are not legally required to carry General Liability coverage. I write many "janitorial" customers and the premium is not high. Maybe $500-$750. for $500,000 of coverage...depending on which company I use.
The act or act's committed by them are your responsibility and you need to protect yourself from negligence or injury of your contractor. The reason is you are signing a contract. This agreement applied or not holds you responsible.
Get evidence from them and have them name you as additional insured.