Request Liability and Worker’s Compensation Insurance certificates from the appropriate vendors.
Keep your file of insurance certificates up to date. You may find that some of your vendors are sole proprietors with no employees or subcontractors of their own. They cannot get worker’s compensation insurance on themselves. In that case you should have them complete a sole proprietor statement to release your company from any workers compensation liability related to that sole proprietor.
If you have employees you are likely required to carry worker’s compensation insurance. Typically you pay up front based on estimated payroll costs. At the end of your policy period an audit is conducted to find the exact amount of insurance premiums that should have been paid and a bill is sent for any balance or a refund is issued for an overpayment. The auditors will also ask about any subcontract work that you may have had completed. This is when you will need insurance certificates on file for those subcontractors. If you don’t have these insurance certificates you may be billed additional premiums for insurance for your subcontractors. Contact your insurance agent if you have additional questions.
Click Here for a sample Request for Information
Click Here for a sample Sole Proprietor Statement