Contractor Liability Waiver Form

[Chuck Brickman]

I understand that the "gold standard" is to ensure every contractor has liability and worker's comp insurance and that I have renovator's insurance on the rehab property.

That being said, what are your thoughts on ensuring the contractor has worker's comp...but states his people will sign contractor liability waiver forms provided by me regarding liability insurance as he can't afford to give them insurance?

I understand that a shrewd lawyer, even with the liability form, could have at you...

Have you folks done this?

Thanks

[Joe Bertolino]

Liability carriers often have what is called an "action over" exclusion. This means that you cannot sue yourself. If you hire a contractor that does not have their own insurance (GL or WC) then you are 100% on the hook for that jobsite and your insurance carrier is not going to protect you from your own employees (they are not considered subs at that point because they do not have their own contractors license or insurance). WC is the sole remedy for injured employees and you are the employer. If you hired them directly... they are your respondsibility and they cannot waive that respondsibility. You either need to take the risk with your own GL and workers' comp or you need to hire subs with a legit contract that carry their own GL and WC. You can get a certificate of insurance from them naming you as additional insured. You can also check the CSLB for their WC carrier information. If you sign a contract with an unlicensed contractor and they screw something up... it is very unlikely your insurance company is going to come to the rescue as they have requirements on how you will hire your subs (which includes contracts and certs of insurance naming you as AI). If you are hiring a one man show with his own Contractors license and GL... he doesn't need to carry WC because he doesn't have employees.