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Logistics of subbing out & worker's comp

Discussion in 'Business Fundamentals' started by yardsmith, Oct 5, 2015.

  1. yardsmith

    yardsmith Senior Member
    Messages: 248

    Hey guys-
    Bidding on a sizeable snow contract this week, & will most likely sub it out to a friend of mine who has bigger equipment & a bigger operation.
    Question is I'm a solo operator & am not required to carry worker's comp. He has workers comp for his guys, but since I would be subbing it do I need it for him to be 'working under me'? Or can you 'categorize' it differently on paper so that all that is needed is what he has currently for his crew? Or will his WC cover him as the primary?
    Haven't been down this road before; wanted to make sure I have everything lined up properly
    Last edited: Oct 5, 2015
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    A subcontractor is a stand alone business.
    They are not your responsibility nor are they your employee...
    They are a business all to their own who you hire to do a job

    your issue is showing your customer the papers that are not from your business but those from another company that is actually doing the work and your concerned they will say something about it?

    You can ask your subcontractor for his paper work and submit to your customer.
  3. yardsmith

    yardsmith Senior Member
    Messages: 248

    yes I would have to keep my ducks in a row because the parent company said they don't care if someone 'helps me', but would prefer me not to 'hand off the job to someone else', but this is a good friend I have worked with for many many yrs
  4. ross3031

    ross3031 Senior Member
    Messages: 112

    Just pay the minimum to get a workers comp certificate. Im in Ohio, it was $50 a year and I believe it jumped to $100. Gives you the same certificate as a company with 100 employees
  5. JustJeff

    JustJeff 2000 Club Member
    Messages: 2,481

    Deleted. I'm drunk at the present moment, and nothing I say will be upheld in a court of law.
    Last edited: Oct 15, 2015
  6. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,123

    If your Subcontractor does not pay his workers comp and there is a claim filed - they will come after you next. Give the contract to him and have him pay you a finders fee.
  7. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 166

    Yardsmith, workers compensation insurance laws vary from state to state so best to contact your local independent insurance agent for advice on this. Best to contact one that deals with a lot of contracting insurance. They will be your best resource. Good luck.
  8. Randall Ave

    Randall Ave PlowSite Veteran
    Messages: 3,588

    All states are different, get insurance certificates from him, and if you want have him add you as an additionally insured party. I think then if the insurance lapses, you would be notified.
  9. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883