How to avoid liability if contractor is injured?

[Daniel Hart]

My insurance agent says that in my state (NC) a liability waiver signed by a contractor is not good enough. He states that the workers should have workmans comp, which will cost about $5k a year for someone earning $40k, which we all know is not feasible for someone grosssing 40k, and taking home even less. The cost for me to get the insurance is about 3k-4k, and is just not something i can afford, I am still a small time real estate investor.

I can understand that some may say to hire someone with workmans comp only, but when hiring a handyman, landscaper, with a $50-$500 job it's just not realistic to expect them to have it.

Does anyone have any advice, or even better... NC specific info?