Liability Insurance / Workmans Comp

[rockwoodpapersealer 14]

We have liability insurance, no real 'employees', so we do not have WC. (it's a minimum of $750 a year here and that is to 'exclude' yourself from workmans comp), in other words, the $750 is for paper shuffling and stating that you have workmans comp, but are excluding yourself from gaining anything from it.

Anyway, we decided to have a helper. Does anyone have a helper that they don't provide workmans comp for? is it too risky and dangerous? What if you consider / hire them as a sub-contractor. Are you safe then? Can you legally ask this person to sign a waiver stating that they won't sue you if they get injured? Is that legal?

It seems like a lot of money to have to pay $750 per season to pay workmans comp for this guy....

Is there a way to have this guy work for us, but not get screwed if he gets hurt or damages a customers property?

It seems expensive, but I'd like to cover my basis... legally and reasonably.

[Celeste 341]

This is how it was explained to me:

1) If you do not have workers compensation, if something happens, the liability falls to the homeowner and possibly to your pocket.

2) Unless he provides you with his certificate of insurance, even as a subcontractor, he falls under you. Kind of like when a homeowner hires you as a sub.

3) If you do any work for a contractor/builder, the liability falls under their WC and they really don't like that at all - most require proof that you have your own.

We signed a million dollar contract that we could not have gotten without our $851.00 "ghost policy". Not a bad return on our investment. We now clean new construction brick for over half a dozen custom home builders who's invoices exceed the premium at least a couple times a month.

You get audited annually and the premium is based on your payroll after that. I would strongly advise spending the money......but then again, we practice erring on the side of caution on just about everything.

Celeste

[charlie 14]

Run that person through a temp service and that way you are covered.

Charlie

[JFife 14]

Charlie (or someone else),

Can you explain more about how you do the temp. service thing??

I'll add to what Celeste said, if you got audited (and are red-flagged if you are claiming to have a lot of subs) there is a lot to go into proving that they are actually a sub. If they use your equipment......not a sub. Ride in your vehicles.....not a sub. List goes on and on. Celeste is right, err on the side of caution, especially if you have a decent net worth or are trying to establish a reputable, long-term biz. If that is not your goal, get a good mexican that has his own truck, have him buy a biz license called Sanchez Power Wash, liability ins., give him a washer or brushes or whatever, and hire him as a sub. As long as he's insured, licensed and has his own tools, he's a sub. Give him his tax forms, etc., and if he doesn't pay it's his problem (obviously he won't) and you're off the hook. That is how a lot of guys I know work around the system.

[rockwoodpapersealer 14]

Thanks everyone.

The helper is using our equipment and truck, which makes me nervous and I have heard from someone else about hiring him through a temp service and that covers the workmans comp. This is much much cheaper. I had inquired about it previously, but wasnt sure if it was legit or just a 'come on' from the temp agency.

Celeste, thanks for turning me to this site... (You refered me from that 'other' place.)

We have a TON of builders up here, I've never seen anyone pressure washing anything once a house is done here. Is the outside of the house that dirty that it needs to be washed? We'd love a contract like that (who wouldn't), is it a common out there to pressure wash new homes? The gears in my brain are turning...

[Celeste 341]

Downsides to a temp service (although I'm not discouraging it). I spoke at length to one in our area and here's their deal. You hire one of their folks - they want 30-40 hours guaranteed because they're all looking to be a full time worker. You must pay them (the agency) weekly because that's how they pay. It's going to cost you somewhere in the neighborhood of $12-$15 / hour for your employee to see about $8.00 - $10.00 gross pay, which is what they will encourage you to pay for the work you want. My temp agency actually pretty much turned us down as clients because we couldn't guarantee the need for workers everyday (and that's a weather thing in this line of work).

As far as new construction - vinyl houses don't necessarily need pressure washing - more just a rinse unless the workers have walked all over the vinyl before it gets on the house (and this does happen). New construction brick is a whole different story - unless someone has really good masons or their masons have their own washers, these usually need to be pressure washed with acid. There is good money to be made there but you have to get your foot in the door and your name out there. When we first started out, we also offered interior new construction clean up so we were a "full service" company. (We got out of those interiors this year though! Roger established himself well enough with the bricks that the builders still call him for the outsides anyway)

Good luck!

Celeste

[rockwoodpapersealer 14]

I've been in touch with our local Labor Network. We can have our helper apply there as a temp and he'll be working only with us. We call Labor Network and let them know the hours/days we are using him. They're asking for $6.00 an hour for this service, which is for workmans comp and taxes (not the helpers hourly pay, of course).

No minimum hours or days...