I recently placed a bid on LA fitness to clean the windows in 4 different locations. The bid went through a maintenance and construction company. I had a previous question a week or so ago on the properties. My question now, the company requested a W9 form, general liability insurance and workmen’s comp insurance. I submitted the GL insurance and W9 to them, they are also asking for the workers comp. I don’t have workers comp because I am owner operator, I am in NY state. Is it required for me to have it?
there are 2 things in play here.
one is the law you need to check with the appropriate govt agency for your area.
the is the organization hiring you, they can require anything they want, it is up to you whether you comply or walk away.
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It’s a decent job, but I know if I get workers comp, I will be losing money, I’ve heard it can be quite pricey. I’m just waiting from my insurance agent for a quote, maybe I can get comp just for that job.
call them, explain your situation and find out. check with gov first if they require it and you don’t have it you’ll look the fool. this is actually something you should already know
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My insurance agent already informed me that owners only have to have GL insurance, workers comp is not required. But if it’s policy with the construction company that the vendor has to also have comp, then if I want the job, I would have to comply, I’m guessing. When you say check with government first, What government agency would I contact?
sorry i don’t know, here in canada each provice has a workers compensation board that handles it. search workers comp in your area and see what turns up besides companies.
your agent may be right that’s how it is here owner coverage is optional.
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I had a large commercial job ask me about this also. I got a quote for 9,000 so that was a no go. I spoke to the client and they waived that requirement because I didn’t have any employees. I later learned that a small-business focused insurance place might have been able to help me get an insurance exemption. So it might be worth looking into an insurance place that specializes in small businesses.
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I just contacted the workers comp office, she gave me a couple sites to look at for regulations. If comp is way too much, I’m not going to take the job. I quoted the 4 locations under $1000, it may not be worth taking the job if I’m going to lose money on comp.
I have bid on jobs requiring Workmens Comp and they have all waived it since I am also a owner/operator with no employees. Good Luck.
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Did you have to get a waiver exemption form of some sort from someone? Or, how did you explain to them that you don’t have workers comp and not getting comp in order to have it waived?
They might just assume you have employees. Most companies have them and just think if you own a company you must have employees too. Just do as the others said and bring it to the attention of your contact within the company.
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I emailed them and explained that my brother and I do not have employees. Hopefully they respond with something positive.
I told the customer that I was not required to get workmens comp since I had no employees. All of them never questioned it and said okay. This is coming from many large companies. Never had an issue.
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Thank you all for your great advice. Hoping for the best.
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Have you thought that even though the work comp isn’t worth it for this specific job it may open the door for other jobs either with the same people or others they can send your way? I am an owner/operator and only hire contract workers when I need help, but have had work comp since day 1 because it allowed me to get jobs where I normally wouldn’t. Well worth the investment for me. Maybe not for you, but just a thought.
Increase your bid to cover the insurance or at least a portion of it. They either reject the bid because it’s too high or they reject because you lack the insurance, but if they accept the bid then it’s a bonus because you now have it or you cancel when the job is done.
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I dealt with this last year here in CA. I went on some on some govt sight and filled out a form that worked I’ll see if I can dig it up
That worked here and CA is pretty gnarly with govt bs. Hope it helps
Since it is not required for your business set up, check if you can be added to theirs for this job? Your insurance agent may be able to answer that possibility for you without going back the construction company for the answer.
