General Contractors Worker's Comp Excludes Boss

[ALogan]

What is the name of your state?

CALIFORNIA

I am perparing to sign a contract with a general contractor for a home expansion. The work will be done by a small company that will generally rely on hiring subcontractors. The contractor has provided proof of worker's comp, but that document says that he and his partner, who will be supervising the job, are excluded. The contractor said that he and his partner are excluded because they aren't doing the work.

That may protect him as a contractor, but don't I also need protection against Worker's Comp claims? Shouldn't everyone be covered?

Thanks in advance for any info you may provide!

 

[las365]

When I co-owned a small restaurant, the owners were excluded from the WC coverage. It was the way the policy was written and was not a choice. Perhaps that is the case with your contractor.

Talk to your insurance agent or carrier for your homeowners insurance. Maybe you would be adequately covered under your HO insurance if anything happens that you are liable for. Maybe you should purchase additional coverage particularly for this construction job. Maybe they can advise you whether the contractor's general liability policy, if they have one, would provide protection for you if you were named an additional insured.

 

[ALogan]

Thanks, las365. Your info is helpful!

 

[JustAPal00]

I also owned a couple small resturants, and was excluded from workers comp. I did it as a matter of choice though because my ex wife got great benefits at her job. She is a nurse at a hospital. We had excellent health insurnce.

 

[moburkes]

Many owners exclude themselves from coverage. It saves them money on the premiums.

 

[beckettcmc]

Make him get coverage

Do not risk your home because some contractor is trying to save money on his workers compensation. Is he really not going to do anything? Also check your homeowners policy to see if you have any coverage there.

 

[beckettcmc]

To be safe

Make him get a contract completion bond as well. A lot of contractors are going belly up right now so its worth it to be super cautious.

 

[moburkes]

Do not risk your home because some contractor is trying to save money on his workers compensation. Is he really not going to do anything? Also check your homeowners policy to see if you have any coverage there.

Please explain. I have no idea how his house is at risk.

 

[beckettcmc]

Many small contractors

Many small contractors opt to exclude themselves to save money. If he gets hurt on the job he can sue the homeowner.

 

[moburkes]

Many small contractors opt to exclude themselves to save money. If he gets hurt on the job he can sue the homeowner.

Of course he can sue the homeowner. He can also sue the President.