workers comp question

[gilraine]

I am starting a landsacaping business on the side.. going with an llc and just myself as the sole employee.. do i need to carry workers comp insurance as a sole proprietor?? i have planned on 1 million$ of liability insurance, but am getting conflicting answers about workers comp.. thanks

 

[ATH]

There are at least 2 questions to be answered:

1) The legal question depends on the state. Contact whoever is in charge of workers comp in the state.

2) The second question is: are you covered if you are injured on the job? Assuming you have health insurance, you need to ask them "If I get hurt working for myself in a sole member LLC, will you cover my injuries?"

It is not required for me in Ohio. I have confirmed that my insurance will pay if I need them to. Therefore, I don't pay on myself.

 

[pdqdl]

Hiring yourself in Missouri will not require worker's comp by law, but not having it will mean you won't get work from most companies. Homeowners seldom check for that.

Worker's comp is an insurance policy that protects the employer from lawsuits. Most employees think that it is for their benefit, but really, it is just an insurance policy to keep the employer from being sued by the employees. Hence, there is no value in insuring yourself against lawsuits by you. If purchased, however, it will pay your medical bills and could provide payments for lost work or permanent disability.

Most of the time, bigger companies will require that the insurance company send them a certificate of insurance, often naming them as "an additional insured". This protects them from being sued by the injured employees also.

Without that policy, you won't get their work.

 

[Dalmatian90]

A sole propeitor, with no employees, is not covered by the Workman's Compensation act unless they voluntarily elect to be covered by it.

Here's the form to sign up:
http://wcc.state.ct.us/download/acrobat/75.pdf

Hence, there is no value in insuring yourself against lawsuits by you.

Big time "I am not a lawyer" warning here -- but what is your current health insurance / short & long term disability you may have through a wife, another employer, or even yourself say about injuries occured in an occupation? I can see cases they *might* deny coverage, and/or for a really strange one essentially subrogate their claim to worker's comp. Sort of like carrying cargo / passengers for hire on your standard auto insurance policy, or renting out your house with just a regular homeowner's policy -- you may find yourself holding the short straw if something goes bad big time.

 

[cjnspecial]

While you may not be statutorily required to have a comp policy in CT, a lot of commercial clients require you have it to do business with them. The last thing they want is for you or a part time worker of yours to get hurt and their comp carrier/attorneys get involved.