Workers Comp Insurance
I was planning on having a handyman coming in to do some work on a rehab. He does not posess insurance. I have read places that simply say to add a workers comp rider to your homeowners policy and your good to go. I called my insurance agent and 2 others and they have never heard of doing that before. How do I protect myself if I cant get it and my handyman does not have it?
Also I dont have an entity right now. Can I get liability insurance while I am doing business in my own name?
[ Edited by billfaith on Date 03/09/2006 ]
I gotcha there. Is there anything I can get though? Workers comp and liability? Do I need liability? I dont have a business entity. Thanks.
That takes care of that part thanks. Lastly what about liability insurance? What if the nosey neighbors child comes over and gets hurt? I dont think my homeowners will cover it and again I cant get liability ins without a business. Thanks.
I use State farm for my rental policies. I pay additional for a 2 million business liabilty coverage on each property. I hope this helps.
Thanks
Jeff
Hi Jeff
Well they are not rentals, they are vacant rehabs. And I keep getting told I cant get business liability insurace because I dont have a legal business. Thanks.
Got ya - With that said, I still use licensed and insured contractors.
Jeff
I have a 2 mil liability umbrella from state farm for my rentals. For my vacants my builders risk carries a 500k liability protection.
Unlicensed and uninsured workman are a problem. Personally, I do not worry about it unless it is the roof, tree work, or electric. I know it is taking a risk, but we all take risks. I choose the three that have the most accidents to try and lessen the risks.
perhaps builders risk is the key. I am just getting normal insurance which does not have liability coverage.
Builders risk only covers fire flood theft etc. Most policies without a rider do not cover WC.
I have an umbrella policy that covers slips and falls etc.
I have used un or underlicensed labor, frequently contractors that are licensed will have illegal immigrant laborers.
According to my insurance guy they can be insured if they are independant contractors. This costs $500 a year but will not cover their injuries on the job..
In this business one is always weighing profitability with risk.
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Hire a licensed and insured contractor (with WC). Also carry liability insurance on the rehabs. AMIG, Diamond States, and Foremost offer it...
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Great thread everyone. This helps alot. Thanks.
I thought I would mention that I have a handyman that I am helping get licensed as a contractor so he can handle bigger $ projects for me..
Great answer Ruman, I completely forgot about the leverage aspect.