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Question:

Who counts as a subcontractor for purposes of liability insurance?

I'm a general contractorWe do roofing, siding, etcI carry liability insurance, obviously, and so do the crews I have do the workMy liability insurance policy has a provision stating that all subcontractors must carry liability insuranceMy question is, who counts as a subcontractor, exactly? The labor crews, obviouslyDump truck guy? Sales guy? What about the guy who puts together my website? All these are 1099'd quot;independent contractorsquot;Which ones count, which ones don't? Seems to me like it'd be a bit silly to require web design guy to have liability insurance.I would ask my insurance agency, but I'm hesitant to, thinking that they might just aim high and tell me everybody, since they'd make money on additional policies.

Answer:

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Anyone you hire to do work for youIf you do NOT get an insurance certificate from them, showing THEY have insurance, then come audit time, your auditor will rate them as employees - and charge you accordingly Paying someone via a 1099 doesn't make them a subcontractor rather than an employeeBut ALL of them could link to you for a claim, if they were doing what you paid them to do It's NOT silly to require a web designer to have liability - and workers comp - insurance Yes, if you pay a dumpster service to do a particular job for you, you have subcontracted the work out to themIf they dumped illegally - YOU can be held liable for itI've SEEN pollution claims for JUST this situation Your supplier delivering products to you, though, is a VENDOR, not a subcontractorStill, you'll want to be damn sure they have insurance before stepping foot on your premises, because again, if they don't, YOU can be on the hook for it Bottom line: EVERYONE you pay, is either a vendor, an employee, or a subcontractorIf you do NOT get adequate proof of insurance from them, you can expect it to bite you in the rear either at audit time, or claim time.

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