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This information is not legal advise. Always consult an attorney in
matters of law. |
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Why is
this an important question? |
In California, there is a frail, thin, dotted line separating
independent contractors from employees.
The line constantly changes due to court
rulings, legislation and social custom.
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If an independent contractor is hurt on your
premises, he/she, their family and their attorney may have "selective amnesia";
only you will be able to remember that s/he was an independent contractor. Even if you
have a contract, "that’s not what they thought it meant". You end up in
court and your insurer probably will have to pay. Current law tends to favor the injured employee. |
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If you fail to follow certain
procedures & enforce them, your intentions and meanings can cost you extra
money and expose you & your business to uninsured liability claims.
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Execute an Independent Contractor
Agreement.
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Execute a Hold Harmless Agreement.
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Deal with independent contractors like independent
contractors, not employees.
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Require insurance documents from all
independent contractors before they begin work for you. |
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1 |
Coverage limits should be at least as much as yours |
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2 |
Verify Liability, Workers Compensation and Vehicle Insurance. |
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3 |
Require that you are named an additional insured or at least
become a certificate holder. |
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4 |
Failure to comply usually means that the value you paid to each
independent contractor will be considered as remuneration. It will effect (raise) your
premium in any auditable insurance policy. |
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