insurance n' hired labor

[hayray]

My insurance guy told me that there is a gap in coverage if you 1099 farm labor unless they have their own unsurance. He told me that my workmans comp would probably cover a minor injury but not if it was a major injury unless they are a actual employee. He said you could get them to possibly sign a waiver that you are not liable for them if they get hurt and still treat them as contract labor. Just don't want to do all that paper work. Is there any way to hire contract labor and still insure them and claim the labor as an expense?

 

[Anonymous-0]

As a contractor that you 1099, they should be providing their own insurance. Insist on seeing their insurance papers. Then cancel out your workman's comp and pay them extra for their coverage.

I would also run this by an attorney to make sure there were no gaps. Injuries and insurance coverage and IRS can make for some mighty expensive bills.

 

[Fergienewbee]

At work, we often sub out drywall hanging and finishing. All of our subs carry insurance or don't work for us.

Larry in Michigan

 

[comfortking]

Hired labor on the farm most likly is not 1099 labor anymore unless you are hiring a group to do a certain task. Make sure you know what qualifies as 1099. I know if you have any say in certain criteria or descisons as to when and how the work is done it may not be 1099.

 

[Anonymous-0]

You will be better off 1099ing them,and require that they show proof of insurance.
If you are a small operation,carrying 3-5 million in liability insurance will bankrupt you.
Even with contract employees you better make sure you have all the necessary safety equipment,SOPs for the equipment, hazmat stickers,ROPS,seatbelts,PTO shielding,fire extinguishers,eye wash stations,dust masks etc.Plus whatever else your insurance company recommends.Because in the event of an accident even due to the contractors stupidity you are still liable.It can very easily cost you $50K in legal fees to prove you did nothing wrong in the event of a lawsuit.

 

[IaGary]

I have coverage on my Farm Property and Liabilty Policy.

It states- Farm comprehensive personal liabilty including employer liability for temoporary help employed less than 30 days per year.

It has a medical payment limit and a liability limit.

This covers any part time help I may have. Also covers for help which is not payed. Such as friends and relatives that help me.

Gary

 

[dhermesc]

If the sub contractor does not have the proper insurance coverage the liability falls back on the general contractor - if the general doesn't have insurance it falls back on the owner. Been there done that.

 

[GeneMO]

My Farm policy with Missouri Farm Bureau, automatically provides coverage for part time help. Part time is considered up to 100 days per year. Accidents are covered up to whatever limits of liability you have on the policy.

I am just a small time hobby farmer anymore, but I still carry 1 million limits.

You just need to check with your own agent/policy. Not plugging Farm Bureau, but generally they tend to be a little more accommodating on farm issues.


Gene

 

[BillinCentralMO]

I highly reccomend you take all your ins. papers to your Lawyer.This is quite complicated. For example , you ask them to provide proof of insurace. The worker sends you a copy of the insurance policy declaration page and it shows 3 million in insurance. Great ! Right ? WRONG. His helper falls off the building or whatever... ? The contractor has no workers comp insurance , nor do you. This will get nasty and expensive real fast. You will be visiting your lawyer alot. You need to make sure you have insurance for your situation. This typically means first dollar defense subject only to the deductible. The insurer provides counsel at their expense.