Sole Proprietor - Workers Comp coverage - Sub Contractors Ohio

[Jack from Ohio]

Can a sole proprietor provide Workers Comp coverage to sub contractors?  All workers are paid on 1099.  Client, landscaping business has obtained an account that requires him to have Workers comp coverage certificate.

 

I have not found a definite answer.

[kcjenkins]

Here's the best info I've found on it 

 

Many states mandate workers comp insurance for W2 employees, but some states can also require that you cover your uninsured 1099 contractors. So be sure you’re familiar with the laws of the state(s) where you and your clients do business, and ask your agent or broker for clarification if you need it.

 

Regardless of state law, it’s always a good idea to require that your subcontractors carry workers’ compensation insurance. Why? Because if your subcontractor isn’t covered and an on-the-job injury occurs, you could be held financially responsible.

 

Suppose you bring in a subcontractor whose employee suffers a back injury while on a client site. The subcontractor company is uninsured – but that won’t stop the employee from seeking damages. When he doesn’t get any compensation from his own employer, your company is the next logical place to turn. And unless you’re paying premiums to cover contractors, he may not be covered by your workers’ comp insurance, so you could be either paying his medical bills out of pocket or facing a lawsuit.

 

As with general liability insurance, you can require in your contract that independent contractors carry workers’ comp insurance. Alternately, you can add the subcontractor’s employees onto your own policy, and then pass the costs on to the subcontractor as part of your agreement.

http://www.cailorfleming.com/documents/OhioWorkersCompensationBasics101.pdf

[mcb39]

In WI, the answer would be yes.  My husband has always been required to carry workers comp.; even though he has never had employees.  Now he has a Commission Salesperson who works independently.  When we do the workers comp audit; his SE payments are added in to calculate the premium.  I have C clients who carry it on employees, C clients who carry it on subs and C clients who have subs that carry their own comp.  All of these things are privy to the workers comp audit which is a yearly thing in WI.  Just finished doing one.

[ILLMAS]

In IL it's also required, people have lost contracts because they failed to cover themselves and subcontractor with workmen comp. FYI owners and corporate officer can exclude themselves from WC, doesn't make sense for them to sue themselves. 

[mcb39]

In IL it's also required, people have lost contracts because they failed to cover themselves and subcontractor with workmen comp. FYI owners and corporate officer can exclude themselves from WC, doesn't make sense for them to sue themselves. 

 

In WI, Partnerships have to carry it even though they have no employees and the Partners are not covered.  This is even though they have no subs.  THAT never has made sense to me.  I would never be covered because I am married to a Partner and, also, am a sub.  For years, I did their work in their office.  For a long time now, I do their work in my office.  Sometimes, I even get paid.