Workers Comp question

[James Feiden]

Hello, I currently own 36 rental homes. To add an extra hedge of protection and picked up Worker's Comp. Couple questions: If you have a sub do any work should you make sure they show a workers comp insurance plan? Should you 1099 everyone? My insurance company is treating all companies who I did not 1099 and cannot produce a certificate of liability as an employee. Basically I've got to pay a percentage into the workers comp plan for their services. The certificate of liability needs to be the workers comp coverage. A recent audit indicates I'll have to pay workers comp for about $40,000 in wages as I cannot produce Certs and 1099s. Anyone dealing with some similar situation? Thanks greatly appreciated!

[Jason Bott]

@James Feiden This is how all work comp policies are set up.  Your policy covers all employees & 1099 subs unless the subs have a work comp policy to take the place of your policy.

Your agent should have warned you of this as it is a very common issue for any business dealing with subcontractors.

Your subcontractor agreement should detail the work comp requirement.  If you do not have one, let me know.  I had a Subcontractor agreement written specifically for my WI & IL landlords to use.