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Subs provide their own insurance?

Discussion in 'Commercial Snow Removal' started by PPMan, Oct 19, 2007.

  1. PPMan

    PPMan Member
    from Va.
    Messages: 48

    Interesting reading the thread about insurance and comm. vs. personal.

    Do those who use subs require them to provide proof of commercial insurance?

    Do most subs only temporarily change to commercial insurance in the winter and then change back?

    I'm looking for a sub in No.Va. and was thinking about this, not sure how much extra it would be for an individual. We are required to carry comm. ins. and would need the sub too also but not sure how much extra $$$ it would be for them?
  2. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    We add subs without insurance to our policy, we pay a pretty hefty sum for this but they understand that they cannot plow for us without it. We adjust their rates accordingly.
  3. SnoFarmer

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


    A subcontractor is a contractor that has been hired to do a job by the general contractor You.......

    They are a contractor and they need their own Ins They pay there own.

    You have them fill out a 10-99.
    not a W-2
    They become your employee when you put there name on your INS.

    I have a lot that I hold the contract for. I want to hire a sub"contractor".
    I just became the general contractor and Jack's Plowing ( a LLC LLP or a CO etc etc... Became the sub"contractor"
    An as a businessman in the snow removel/plowing industry he will need to carry commercial INS.

    I have him fill out or send jack a 10-99 as he is responsible for the taxes for his business not me at the end of the year and not a w-2.

    Other wise you just hired an employee.

    Take a look at what the IRS has to say, don't take my word;)
  4. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    All that may be true. However my insurance wants to know if I use subs. They are notified, it is on my paperwork from the insurance company. I send the insurance company a copy of their certificate.
  5. SnoFarmer

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

    Correct, You do not insure the plummer, electrician, mason, doctor, roofer
    or the plow-guy.......
    They are NOTIFIED,,,,,,, NOT insured by your Ins
    Last edited: Oct 19, 2007
  6. PPMan

    PPMan Member
    from Va.
    Messages: 48

    I worded that a little off I think.

    I was asking about commercial vehicle insurance, not liabilty, workers comp etc.

    I don't believe they would be required to have those but I'll check my contracts to make sure.
  7. mrbrickman

    mrbrickman Senior Member
    from montana
    Messages: 138

    yeah, you do need commercial vehicle insurance when you sub for anyone on the planet. However, lots of the contractors hiring the subs will get their own umbrella policy which will cover anyone doing business for the contractor in regards to liabilty damages as long as you have a signed and dated working contract with the contractor that you are a sub for them, however as a good subcontractor, you ought to have your own workmans comp to protect your own butt incase one of your employees gets hurt on the job. This umbrella policy costs a bit, but its worth it, i know guys who add this and just take 5 an hr off the truck rate to help cover costs. I have the cheapest my mgmt companies accept, 100k workmans comp for each accident on all employees, all owned autos for one million on commercial vehicle, and 1million on liability, the mgmt companies require 2 million but i have the 1million umbrella (an extra 600 a year) which combined with the 1mil liabilty is acceptable to mgmt.

    its costly but unless i was a one man band using one truck with a force field bubble around it, i wouldnt go without it, all in all costs me a bit over 2400 a year, but i also insure a triaxle and single axle cdl dump along with 6 pickups and 2 equipment trailers
  8. PPMan

    PPMan Member
    from Va.
    Messages: 48

    I've checked with my ins. agent and it doesn't seem possible to cover someone elses vehicle under my policy?
  9. Snowpower

    Snowpower Senior Member
    Messages: 636

    I subbed without a commercial policy on my vehicle. But I did need General Liability. It wasn't until I solo'd that I needed to up to commercial and 250/500,000 liability on my vehicle.
    Signed a big contract too and it was just never mentioned or brought up for years.

    But frankly......it's not much money at all to up your vehicle insurance to commercial 250/500.
    I actually feel a little remiss in not doing it myself years ago. I left myself somewhat vulnerable since everything we all do is somehow tied to a vehicle being used.

    Heck I needed 250/500 insurance just to park my truck at a commercial I mowed.
  10. DBL

    DBL PlowSite.com Addict
    Messages: 1,310

    ive been a sub before and need to use my own ins so all my subs need their own as well