contractor's insurance question

lorian · #1 10/31/07, 12:26 PM

We have to buy contractors insurance and I know there are a lot you out there that have researched this (best deal) so.......

My husband was asked, by the company he works for (as a full time employee/foreman), if he would like to do "a job on the side?".
It was a small job, $1,000, but a VERY important, desperately needed $1,000.

When he went to ask for his check they told him (didn't bother to inform him beforehand) that he needed to have his contractors insurance on file before they would pay him.

Remember, he works for them as a full time employee, he hasn't ever needed contractors insurance before.
So here we sit, don't have the money to buy the insurance so we can't get paid!!!

Any companies you can recommend? inexpensive?

Selena · #2 10/31/07, 01:05 PM

I think your money is better spent paying a lawyer to collect. Contractor insurance is NOT cheap and I doubt if you'll find a legitimate company to insure what will be considered your husband's hobby. If he is an employee, there are no 'side' jobs - the company is being a deadbeat skirting the law. Not paying unemployment, comp, social security etc. Now YOU get to decide how honest you are. Is there a signed contract? Doubt it. Ready to go to small claims court? Hire a lawyer? Have the dept of labor talk to the employer or maybe even the IRS or state dept of revenue. But no matter how you slice it, time for your spouse to find a new job.

Morning Owl · #3 10/31/07, 01:27 PM

Selena I have to agree with Lorian these people are trying to rip you off. But if you do want to get insurance heres who to contact in your state.

Pennsylvania Surplus Lines Association
Ken Rudert, Executive Director
211 Welsh Pool Road, Suite 200
Exton, PA 19341
Telephone (610) 594-1340
Fax (610) 594-7623
E-mail: krudert@pasla.org
Website: www.pasla.org

They do not sell insurance they are the head of Surplus Lines in your state. Call them and ask if they could give you the number of a Surplus Lines producer that works with contractors. Usually but not always contractors have to go through surplus lines to get insured. It will also be cheaper to go through surplus lines than an admitted market.

Good Luck

Goatsandsheep · #4 10/31/07, 02:11 PM

How big is the company? What insurance do they want? We carry Workers comp. and liability. Are they saying he's a sub contractor? I prefer for are sub to carry their own insurance but they can go under are policy it just cost us more. It sounds like it was suppose to be a cash job and they got a check for the company and have to claim the money and show where it went. Generally side jobs are cash jobs in construction. G&S

ericjeeper · #5 10/31/07, 03:34 PM

My million dollar a year policy only cost me 550 a year. They will set it up quarterly for you for just a little more.

Sorry but he should have liability insurance before doing any job.

**Ross** · #6 10/31/07, 04:13 PM

I have insurance for operating as a heating contractor, costs me about 1.6% of what I earn for 2 million (per job) coverage. For a small one off deal he wasn't informed of or signed off on just tell the (a shame we can't swear here) people he worked for to pay up or face a lawsuit. Then I'd find a new job regardless if they fire him or not. Unless he wants to keep doing side jobs then I agree with Eric, get covered.

lorian · #7 10/31/07, 10:37 PM

He wasn't planning on doing a lot of side jobs, just this one to make a little extra cash. His employer said that he won't pay any sub-contractor until they have a cont. insurance on file.

My husband wasn't thinking of himself as a sub c., he was asked to do this on the side because they couldn't find a sub to do it. He did it off hours and a couple sat.'s.

Hope we don't have to pay $500! Thats half our take!

Beeman · #8 11/01/07, 07:36 AM

I'm not sure about home contractor's insurance but my business liability was a flat rate plus a percentage of my gross income. Gross was easily figured from sales tax receipts as labor is taxed in this state.

You are now seeing first hand why 1 man business is doomed in this country.

PyroDon · #9 11/01/07, 08:13 AM

Mine is $2500 a year for liablity
workmans comp is a percentage per employee

WisJim · #10 11/01/07, 08:55 AM

Getting insurance after the fact seems a little odd to me.

ericjeeper · #11 11/01/07, 04:02 PM

Quote:

Originally Posted by Beeman

.

You are now seeing first hand why 1 man business is doomed in this country.

I totally disagree.. I am a one man show.. If I come across a large job I get subs to help me out..
I would never hit a nail or turn a screw on any job that I do not have liability insurance beforehand.
As for this guys case.. His employer never told him up front that he would be required to be insured.. So I think honestly.. He needs to get the boss off to the side.. and inform him that he owes him some money.. soon.
If he fails to pay, tools would come up a missing..I am not meaning to steal them but rather silently held hostage.Or hidden on the jobsite..above the ceiling grid or behind a column somewhere. I would get my money. I do the job as promised. I want paid as promised.

Pizza Guy · #12 11/01/07, 04:18 PM

Quote:

Originally Posted by WisJim

Getting insurance after the fact seems a little odd to me.

Same thing I was thinking. Since the job is already completed getting insurance now wouldn't cover that job anyhow. The company is pulling fast one it appears.

Clifton73 · #13 11/01/07, 06:52 PM

Unfortunately, you guys are in a tough spot, and you can rest assured the boss knows it. As it stands now the boss got his work done for free...He's assuming you DH won't do anything about it, because afterall he'd be risking his job. Personally, I would go directly to the courthouse and file a small claims lawsuit...wouldn't want to work for such jerks anyway.

stanb999 · #14 11/02/07, 06:54 AM

Quote:

Originally Posted by lorian

He wasn't planning on doing a lot of side jobs, just this one to make a little extra cash. His employer said that he won't pay any sub-contractor until they have a cont. insurance on file.

My husband wasn't thinking of himself as a sub c., he was asked to do this on the side because they couldn't find a sub to do it. He did it off hours and a couple sat.'s.

Hope we don't have to pay $500! Thats half our take!

Call up your local Erie insurance agent.
They have what is called their 5 star policy.
It covers basic construction.
Roofs
Plumbing
electric
Structural
other basic..... Like siding and windows.

Cost is like 350 a year. paid quarterly. So it's like 80 bucks.
Once you get insurance.....Advertise. You will be amazed at how may calls you get. But a note of caution. Always have a contract. Always get the 1/3 at signing. Get 1/3 when you start. Get paid the day you finish (don't leave). If you do it's small claims/ If you don't it's theft of service. One is civil/One is criminal. If they won't pay that way. They don't plan to pay.

HOTW · #15 11/02/07, 06:55 AM

Was there a contract written up naming your SO as a sub? If there was no contract and the company gave him the specifics and the tools and the materials he was working for them. He needs to contact the labor board and see what they think.

saramark · #16 11/02/07, 07:57 AM

My business partner and I pay $917 annually for our $1million coverage. We can do any type of demolition, remodel, or new construction, excluding electrical and plumbing. We have never had a contract written, nor have we signed any for the companies we sub for. I rely on honesty and that God will protect us as we do business the right way. Some people think we are crazy, but in all our years, neither of us has been shorted on a bill or sued, not even a claim or injury on the job site. We have insurance because we have to by law in Maine, but contracts all have loopholes and many customers would not want to get into a contract deal for a small addition to the house, deck, or little jobs. Just makes more work.

Lorian, tell your hubby to stand up to the boss and get this settled like men. No need to be rude or threatening (though I would have a hard time not beating the boss to a pulp) but just state clearly that your hubby was just doing his job as instructed, with no thought of needing more insurance. I would tell the boss that since he wants your husband to be a sub, he can pay him sub rates. A typical employee around here gets $15-18 hourly. A sub brings his own tools and has his own insurance, but gets $25-32 hourly. He can pay him the full pay or keep him as an employee.
The economy, with housing market in the toilet, is actually booming for additions and renovations. People can't sell their houses for a profit, so they seem to mostly be adding on or upgrading. We have all the work we can handle year round, as does every honest carpenter in the area that I know (and I know quite a few).
Don't be pushed around, with his talents and skills, I know he could make a living on his own, maybe partner up with another honest hard working man with the same values and ideals. That is what I did and it works great for us. Family comes before work for me, and God before everything. My partner shares these ideals. We work as much as needed, but don't work overtime, weekends, or evenings.

Just my 2 cents worth

mark

CJ · #17 11/02/07, 07:57 AM

My husband has worked as a contract engineer for over 30 years. For the last 10 years or so, he now negotiates into a contract that he is payed (at his same contract rate, no less!) via W2 instead of a 1099. We no longer have to carry insurance or worry about the liability, but we still get per diem, and all the perks of being a contractor. A very, very sweet deal for us.

No paperwork for me to do (corporation)!