How much Workers Comp should a contractor carry?
Workman’s Compensation is a state controlled insurance and as such, just having it is enough. However, in 2007 the state established a distinction between company owners and employees. Workman’s Compensations board has always required employees to be insured, but owners were in a kind of limbo. The new law requires owners to choose if they are exempt or included. There is a large fee to include owners. Most small companies cannot afford the fee. BEWARE: If your contractor does not have workman’s compensation coverage for himself and he is hurt on site, it is your home owner’s policy that is challenged in court. If the contractor’s vehicles have Massachusetts license plates, the State Insurance Board controls the quality of the company.
