Any idea what the liability is when a 1099 contractor comes to help you with work in your own wood shop?
Yep that is kind of what I was concerned about. We have guys out in the field installing with their own equipment and insurance as 1099. The one guy wants to help in the shop, but so far I only allow my partner in here.I was told by Virginia, that they have to be covered on workmans comp if they work in your shop. There are a lot of people (I know a dozen of them) who have hired people, but try to beat the system by 1099 them only to find out the hard way. 1 shop I supply cabinet parts to was doing that until that 1099 guy cut his finger off at the table saw. Then their were huge issues. Not sure if it's different in NC but I would assume it is not
Richard, I am set up pretty much the same way, but do not carry workers comp as I do not have employees. My 1099 contractors work with their own equipment on GC projects and are all insured, so I have their W9’s and insurance certificates on file.In North Carolina shell polices are not allowed. So if you hire a 1099 worker you are responsible for having them give proof of insurance. The way that it is done is they have the insurance company underwriting their policy send you a copy of their proof of insurance. You hold those copies in your records so when you do your annual audit you provide copies of their proof of insurance to you insurance company. With all that said you are responsible for safety in your shop and holding them to those standards. I would read and hold yourself to the OSHA standards needed for you shop. You can get that info from your insurance company they can also answer any questions about any additional liability insurance needed for your situation. Me I have worker comp and I have to cover myself, I also carry a hefty liability policy and commercial insurance on my vehicle and trailer.
Thanks, I did not know that.Do you receive a 1099 from any of your customers. If you do and you are a producer then by state law you are supposed to have workers comp to cover yourself. You may want to speak with a business insurance professional about your situation.
3-Read your ContractI was told by Virginia, . . . different in NC but I would assume it is not