Do I Need Workers Compensation Insurance - Contractor Tips

[gregvancom]

Always check with your state contractors licensing board for more information about hiring employees and what their requirements actually are. It's always going to depend upon your state requirements.

[popitn2nd]

What are the consequences if a contractor commit a job contract to owners for some renovation. In the state board he certified that he has no employee so he is exempt for workers comp. But he has people work for him to do this job. Im talikng about unlicense workers that he pays under the table. Is this illegal? Is there penalty for this? Is it ok for this contractor to hold and commit contracts to the public?

[gregvancom]

@popitn2nd I think I know what you're talking about, thousands of contractors hire people, without having workers compensation insurance and pay them in cash. I knew one contractor who lost his contractors license, because someone got injured working for him, on one of his projects. If your state requires workers compensation insurance, then it probably would be illegal.

[gregvancom]

@popitn2nd A general contractor can hire subcontractors and wouldn't need any employees or workers compensation insurance as long as his subcontractors who hired employees, were covered by insurance. However, an electrician working on a large project who needed to hire employees, would need insurance.