What is the central question just before employing a contractor for your basement finishing project?
Believe it or otherwise, the key question may also are the least asked: Do you carry Worker’s Compensation Insurance?
Why on earth would that be the key question?
If you engage a contractor to function in your home, you will be legally liable to buy medical bills and a day off if he gets hurt. It doesn’t matter if he could be licensed, unlicensed, a sole proprietor, an official of your corporation, a bum over the street, or possibly a millionaire – YOU are “the boss.”
Regardless of who your basement finishing contractor is, in the event you pay someone to function at home, you are an “employer” under workers’ compensation law.
As the party providing “employment,” you happen to be also responsible for providing compensation if someone is hurt at your residence.
Who would you be answerable for?
First, your basement finishing contractor. Second, any of his employees. Next, anyone that he subcontracts to find your property to operate. Also, anyone that his subcontractor hires to function at your residence. Further, the18 wheeler driver that gives materials on your project to your home. Additionally, the guy who delivers the dumpster to your house for all your waste. The guy you offered a six-pack to if although help carries lumber in. Also… And… Him too…
Do you get the picture?
Anyone who works at your residence poses a threat to you. So how do you avoid this threat?
The quickest and easiest method… get proof worker’s compensation insurance plan out of your basement finishing contractor. NO EXCEPTIONS. He may show you he doesn’t require it because everyone who works for him has it.
Well yes, but imagine if some of those guys let the protection lapse, or cancels it? Sure, your basement finishing contractor would find out eventually, but what are the results if the affiliate question gets hurt inside interim?
If your basement finishing contractor notifies you he doesn’t need Worker’s Comp insurance as they require every one of his subcontractors to hold it, you decide to go ahead and be sure he understands that won’t cover you if he’s wrong, if your policy lapses, or if certainly one of his subcontractors lies to him, etc.
If he efforts to convince you it is not important, summarily dismiss him without further question!
If your basement finishing contractor carries workers’ compensation insurance policy, it acts being an umbrella for each other contractor who comes to your house to do work, whether a business OR a subcontractor. This umbrella shields your potential liability!
Don’t result in the costly mistake of employing a contractor without coverage. Ask the key question!