I’ve looked into workmans comp and it doesnt seem to be worth it to even get a ghost policy. State law in sc requires that a contractor give their sub workmans comp if they dont have it, but if I just do work for say property managers and hotels then they wont need to do that since I won’t be their sub, right? But in the event they want a waiver, do I need to have a waiver or do they usually provide one? Trying get my ducks in a row before I go do alot of selling to what will be larger properties to me.
I don’t know about your state, but in mine if you need a workers comp waiver, you have to apply for it. Send in your money and the completed application, then wait 4-6 weeks for a certificate with the official stamp on it.
If your state is like mine, you may want to do it now, rather than waiting until later when you would need it.
With the statement subs need to be covered I think it also States unless they are their own entity. Which if there a sub they should be their own entity.
If you sub work to somebody it is your responsibility to make sure they have all appropriate state required or customer required policies in place as well.
Also usually work comp is only required by the state if you have employees.
The exception is a customer may require any company they do work with to carry work comp if they have employees or not or at higher limits then what is standard state regulation.
Search for “South Carolina Workers Compensation Commisdion” FAQs. I saw answers for your question there.
I am exempt as sole prop per state law but I can sue under common law if I get hurt, which is what I think they are trying to avoid. Maybe I need a waiver against common law? Winning a common law case would be almost impossible for me since they could prove negligence very easily i would think.
@jhans The company requirements is really what I am trying to prepare for. SC companies are very conservative in their risk, and i dont want to lose a sale over something like not having a waiver or being able to explain why I dont need workmans comp. Contractors having to make sure their subs are in line is how this all started for me, because I was a sub on a ccu and didnt have workmans comp.
I’ve been through it a few times, and how it was explained to me when I called the DOI was though im not required by state law to have it, no one will hire me if i dont, though I remembered others on this form having a waiver for similar situations, but all the posts were at least a few years old so i was wondering if anything had changed. I think people will hire me, I just have to avoid being a sub contractor. Independent contractor is where it is at.
It’s starting to sound like your commercial clients will be in their zone of comfort if you add them as “additional insured” to your policies. I have to do this for my commercial and government clients and I think it costs $50 to add each one.
As for Workers comp, I got the State of Alaska to issue me an exemption, as I am a shareholder and officer of the S corporation (for which I am the sole shareholder and officer) and I am also an employee of the S corporation. To get the exemption I had to submit Articles of Incorporation and minutes from the Corporation officer (me) stating that I would not be required to have Workers Comp for my employee status. Naturally I have Workers Comp that covers the non-shareholder/officer employees, as required by my commercial and government clients.