no work comp insurance--deal breaker?

Question

The agent for contractor I want to hire has sent me proof of current insurance, but I haven't yet received the info from his wc carrier. If he doesn't have wc insurance or can't provide that info though he has said he has it, is that a reason to not hire him? His other coverage is good--million dollar policy.
thanks

Rob Gillespie · Answer

It is a fine line. I would absolutely require them to have a policy that covers you if the tree hits the house, but I am not sold on the wc insurance. 
The more you require someone to have, the more they are gonna charge you, so in the end, if you do not mind paying for it, then require them to have it. Just my 2 cents. :mrgreen:

Richard S. · Answer

if he doesn't have a worker you are fine.. WC is at the bottom of cert and is clearly checked. If its a sub, he will carry his own GL and separate WC. If its a rental, the Rental coverage under the GL will cover damages on behalf of the machine. If two separate entities are working as sole proprietors without any employees, all is fine for damages. If the job details more then one worker? you have questions...When a worker is on site regardless of the GL and umbrella, WC covers the employee(s) A tree falls from a crane onto a employee and a 5 mill GL wont mean much!!  Many of these little guys like to save a buck, (if) they carry the minimal WC, pay cash to worker, and if nothing happens! report no wages!! If something happens! ohhh well he just started... Each state is different for comp and has begun cracking down on subs vs employees vs "none", the law hasnt changed in respect to whom is liabile on a property and whom is not. Glad to hear at least hear others are looking for certs and their values...

Sherry Lewis · Answer

The wording looks correct Proof of Coverage, I guess it depends on the area mine would say Certificate of WC Insurance Coverage... I think it amounts to the same thing.  As for your crane operator, it seems they are covered by the " All operations and Drivers" clause.  Hope this helps.

Mary R. · Answer

The tree person called with the crane co contact number. She said that since she is contracting with the crane service, the crane service is covered under the tree company policy. Is that right? Do I still need to check the crane people insurances?

What else do I need to do or know?

Mary R. · Answer

Is this what I need? Is it appropriate? 
And I still need to find out about the crane operator.

from the wc carrier:
Certificate Number: 1xx
Policy Number: 348xxx
Origin Date: 07/16/2004
Expiration Date: 07/01/2012
Liability Limits:
500/500/500
(000 Omitted)

Proof of Coverage
Description of Operations
TREE PRUNING, SPRAYING, REPAIRING - ALL OPERATIONS & DRIVERS
Job Number: empty      Location:  empty

Will be renewed for the next policy period unless we are otherwise directed by our policyholder.
It is agreed that waiver of subrogation is effective only as respects to the above Certificate Holder for the
project described herein. This agreement shall not operate directly or indirectly to benefit any other
person or organization.
Should the above policy be canceled by the _Company Name_ before the expiration date thereof, the _Company Name_ will endeavor to mail 30 days written notice to the above named Certificate Holder, but failure
to mail such notice shall impose no obligation or liability of any kind upon the _Company Name_

J Scott · Answer

It's definitely enough if there are no claims generated in excess of those amounts.  It's definitely not enough if there are claims generated in excess of those amounts.

:D

I'm guessing that didn't help much.  But, the point is, it all depends on what you are comfortable with.

If it were me, I'd probably be okay with those amounts and for that work.  But, there's not "right" answer to the question...

Mary R. · Answer

I'm having a 40' palm tree removed. He does the trimming and cutting. There will be  crane and operator,  and 2 helpers. His general liability for each occurance is 1 mil, med 5K each person, personal and adv 1 mil, general aggregate, 1 mil, and products 2mil, combined single limit, 1 mil, each occurance 1 mil, aggragate, 1 mil.
I think he owns the crane, but not sure. This is his business, but he may be leasing or renting it. Is that enough, do you think?

J Scott · Answer

Will he have any subs or other workers that will need to be covered by WC?  A sufficient liability policy can replace WC as far as I'm concerned, but if there are going to be lots of subs, I'd want to see liability insurance of closer to $5M.