Recently I’ve been helping a number of small business owners sort through the confusing topic of Workers Compensation Insurance.

 Contractors who hire  workers as 1099 employees can get confused as to who they are responsible to cover.

 It gets a little tricky when they hire some legitimate contractors who may have their own coverage and some of the people they may hire for a few days  to help with a big job.

If  you hire another contractor like a plumber or electrician who has his own Workers Compensation policy, make sure you get a copy of their certificate for your audit at the end of the year or you could end up having to cover them.  You are charged a percentage of what you paid them.  It’s about 14.5% .

 Just because you hire someone as a 1099 employee does not let you off the hook for Workers Compensation Insurance.  A lot of contractors are having their guys go get their own Liability Insurance. That’s OK but it will not mean that you won’t have to pay for their Workers Compensation Insurance.

 If you hire guys (or gals) who have an LLC or have formed a corporation they will either need their own coverage or a form of exclusion from the state.

Hopefully this helps. Please feel free to call me at 231-744-9099 or start by visiting my web site at www.muskegoninsuranceagent.com for more information.