My husbands brother is working with him. He is his only Employee. If we make him a partner and have no other employess do we still have to carry workmans comp?
2007-03-13 12:06:09 · 7 answers · asked by GI 5 in Business & Finance ➔ Insurance
You need to check your state laws. There are some states that require workers comp even if you are a sole proprietor with no employees in some cases. e.g., California requires roofers to carry workers comp even if you have no employees.
Workers Comp rules vary by state. Talk to your insurance agent and find out what the law is in your state.
Generally speaking, sole proprietors and partnerships aren't required to purchase workers' compensation insurance unless and until they have employees who aren't owners. Most states will allow sole proprietors and partners to cover themselves for workers' compensation if they choose to, but it isn't required. (An important note, though-these rules vary from state to state and can change over time. So it's always a good idea to check with your particular state's regulatory agency to make sure what the rules are for your state jurisdiction.)
2007-03-13 12:18:44 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
As others have said you need to check the state rules in regards to this.
In Minnesota you need to own at least 25% of the company to have the option to exclude yourself from the work comp policy.
A qualified agent (hopefully your current agent is one) should be able to answer this question for you without hesitation, so go ahead and call up your current agent and ask. If he doesn't know, find one that can answer that for you quickly and move all of your insurance to that one if he can deliver a viable product.
If you need help finding a good agent try www.trustedchoice.com, you'll be able to search for an agent in your area that has met a certain criteria set by the Independent Insurance Agent & Brokers of America National Association to be labeled "Trusted Choice".
2007-03-14 02:20:40 · answer #2 · answered by Matt1331 2 · 0⤊ 0⤋
Depends on what state you are in. Texas does NOT require you to carry workers comp. Two other states will let you NOT carry workers comp if you have three or fewer employees.
HOWEVER. Not carrying workers comp does NOT mean you're off the hook for the benefits. REGARDLESS of which state you are in, if your employee - regardless of family relationship to you - is injured, during the course of work, YOU ARE LEGALLY OBLIGATED TO PAY ALL MEDICAL BILLS AND LOST WAGES. It's pretty cut and dried. Worst case scenario - he becomes permanently disabled from a bad fall, etc - you will pay his lost wages until he hits retirement age.
So, it's NOT a smart financial move to not carry it, if you have employees. Some employers try to "get around the law" by calling their employees, "subcontractors". It doesn't work - because if your sub doesn't carry workers comp, you're still responsible for their injuries.
2007-03-13 13:18:23 · answer #3 · answered by Anonymous 7 · 0⤊ 1⤋
In many states owners can sign exemption forms, so if your state allows this then you won't have to carry it.
Call your insurance agent or NCCI (National Council on Compensation Insurance) to get the rules for your state.
Good luck!
2007-03-13 13:13:46 · answer #4 · answered by Wendy S 4 · 0⤊ 0⤋
If he is an owner, he wouldn't be covered under workman's comp - so no need to carry it.
2007-03-13 12:11:27 · answer #5 · answered by blue.green_eyes 5 · 0⤊ 1⤋
Depends on the laws in the state that you live in. Check with NCCI.
2007-03-13 12:38:27 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, owners can be exempted, even if he only owns 1% he's an owner..
2007-03-13 13:21:47 · answer #7 · answered by Cher 4 · 0⤊ 0⤋