General Inquiries

Workers Compensation

  • 1.  Workers Compensation

    Posted 09-17-2019 12:37
    From time to time we have subcontractors that are solo shops. In some states, because they are the owner, they are not required to get WC coverage on themselves. However, if they are working on our jobs, the state will require a certificate.

    I'm just curious how others handle this:

    1) You withhold the premium from their payment.

    2) You don't use subs that don't have WC

    Thanks in advance for your input!


    Steve Brunner CPA, CVA, MAFF
    Rizzo Brothers Painting Contractors
    Covington KY
    (859) 431-4700

  • 2.  RE: Workers Compensation

    Posted 09-18-2019 06:57
    We see this sometimes too.  Our policy is that all subs, regardless of size or state minimum requirements, must carry workers compensation insurance.  Just because their state says they do not have to carry it does not mean that they can't go out and buy it.  We require them to carry it or they don't work for us.  The reason is that even if they are a 1 man shop, if they get hurt then our w/c has to pick up their cost and it will be our EMR that goes up.

    James Burnett
    Chief Financial Officer
    W.M. Jordan Co., Inc.
    Newport News VA
    (757) 596-6341

  • 3.  RE: Workers Compensation

    Posted 09-18-2019 08:28
    We require all subs to have W/C and G/L insurance. However, in SC owners of the small businesses can elect out of coverage. So, if the owner is the only employee of the company, they basically end up with a W/C policy with no payroll exposure so the premiums is often very low. The benefit for us is that if the owner hires an employee that employee is covered. If the owner is injured, the owner is not able to bring a claim against our W/C policy because he opted out of coverage under his policy. To my knowledge, this is the only way an employee can waive coverage under the Workers Comp Statute (at least in SC).

    Carl Schultz CPA
    Sanders Brothers Construction Co., Inc.
    North Chaleston SC
    (843) 744-4261

  • 4.  RE: Workers Compensation

    Posted 09-21-2019 07:50
    The best policy is to require all subcontractors to carry workers' comp insurance. The previous responses spell out the reasons to require this. The only thing I would ad is that solos shops are notorious for casual labor problems.

    Jerry Whitaker BA Marketing
    Senior Partner
    Acrisure / Whitaker LaChance
    Portage MI
    (269) 585-7098