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Insurance for subs

Discussion in 'Business Fundamentals' started by smoothbore2004, Dec 1, 2005.

  1. smoothbore2004

    smoothbore2004 Member
    from Indiana
    Messages: 42

    hey guys i have always had my subs carry there own plowing insurance. THe other day i was gonna hire a guy that has worked for a bigger company than mine, plowing with his own truck and he said he never had to carry his own insurance and that the owner told him that he falls under his payroll so he didnt need it. ANy of you guys do the same and if so what do i need to do to get this kind of coverage for my sub drivers?
    It would be a whole lot easeier finding guys in a pinch if i could do it this way but it doesnt sound right to me for some reason
  2. ynvvbr

    ynvvbr Member
    Messages: 68

    If he does not carry insurance then when insurance audit time comes from your insuarnce company, then they will charge you for him. The ****** part is then he could claim on your w/c which would suck. For the 800 hundred buscks tell him to get some. Its just easier that way for you and yours, IMO..

    We went thorugh this a few years back. $7,000 in audit premumms later, also make sure you get a copy of it so your insuarnce agent has it for audit time.
  3. plowman350

    plowman350 Senior Member
    Messages: 125

    workman's comp?

    There is no way that a sub-contractor could qualify for workman's comp. Only payrolled employees qualify. If they are an employee, you must provide workman's comp, social security tax matches, and they would be using your equipment, under your direction.

    A sub-contractor is NOT an employee and does not qualify for benefits. He must use his own equipment and be free to contract his services out to you or any other person/company. The reason we hire subs is to avoid the extra costs associated with payroll (social security taxes, workman's comp, liability insurance, etc.). At the end of the year you send the sub a 1099 so he has record for his own taxes of what you paid him. All taxes are his problem.

    Insurance is an issue between two of you. Most people who hire subs require them to carry their own insurnace and list you as a second insured. You don't have to.....but probably a good idea.
  4. PipeGuy

    PipeGuy Junior Member
    Messages: 21

    Run Forest! Run!
  5. acornish

    acornish Senior Member
    Messages: 184

    ok i sub here for a couple people in jersey-- i have my own rider but when i sub it is the main contractors ins. that comes into play after all he is in charge isnt he --- when i do my own sites its my responsibility.
  6. crazymike

    crazymike Senior Member
    from Toronto
    Messages: 639

    Here is how it works where I sub.

    Their insurance covers slip and fall, etc...

    My insurance covers property damage. This however falls under my regular truck insurance. If I crash into someone with my truck, plow or no plow, I'm covered.
  7. massbowtie

    massbowtie Member
    Messages: 97

    another sub -no insurance

    ive been working for the same guy for the last 7-8 ? years and i dont have to carry insurance.he carries a couple million dollars and im covered thru that according to him.thats good enough for me.i think his insurance would cover first and would go after mine if i had it so he gets the bill anyways. it was agreed to be that way when i got hired because i said i would have to change insurance and register commercially because i had a full size blazer that i bought in the summer and registered it personal,he said dont worry about it.havent had to use any insurance for damages while plowing for the last 24 ? years. im sure it`s up to the parties involved individually though