Management company responsible for contractor Work Comp coverage

[Thomas D.]

We have contractors who with owner approval do repairs for our owners. We pay the Contractors and either deduct the bill from proceeds or bill the owners for reimbursement. During a audit for our workman's compensation coverage we have learned a disturbing fact. All 1099 contractors who are not LLC or Inc are charged to us for workman's comp coverage.

Nothing like paying for insurance for someone who does not work for you directly. 

Anyone had any experience with this ?