Are They Worth the Risk?
December 26, 2012
it depends. How high
are your insurance limits? From
an insurance perspective there are not many upsides to having an
independent handyman/woman around.
posed the limits question earlier because they may be used to
pay for damage your 1099 created.
If your handyman hasn't obtained a general liability
policy, chances are the association's liability limits are going
to be used to cover the accident.
The costs could become expensive especially if the issue
has to go before a judge for ruling.
If he does carry a general liability policy, the
association should make sure they are listed as an additional
association may be defended by the 1099's policy for bodily
injury and property damage to others he/she created.
your 1099 carry worker's compensation?
Probably not since they don't fall under the state of
Georgia worker's comp requirements.
If he does have a worker's comp policy, what is the
association's protocol on making sure it stays in force?
Your 1099 could provide you a certificate showing
coverage was in place one month and simply not pay the bill the
if he is changing a flood light and falls off the ladder, what
happens? If the
accident is severe, the association will most likely be sued for
damages and hospital bills.
The court will try to determine if the 1099 is in fact a
1099 or simply paid as a 1099.
There are many questions and answers that determine if a
court views your 1099 as a true 1099 or as an employee.
I would consult a worker's compensation attorney for this
because they are paid as a 1099 doesn't mean the law considers
them a 1099. If the
judge finds your 1099 is an employee, then the association will
be subject to maintaining a safe work environment and a
settlement will most likely be offered.
Long story short, your general liability policy will most
likely end up paying for some or all of the damages and costs
association runs a risk of either of the two scenarios
occurring. You will
see the indirect affect to the condominium or homeowner's
association when your insurance policies come up for renewal.
You may not be offered renewal by your current carrier.
Or the association's premium may increase significantly
or both may occur. Either
way the association has invested time and now money into this
issue that could have been covered by a policy that costs
roughly $1,300 annually.
do you think the association's 1099 is a good idea still?
I don't think the direct cost difference between a 1099
and a reputable vendor is that significant.
However, the indirect costs simply from an insurance
standpoint will hopefully make you reconsider.
a great day!!
a great day