Do we need Workers Comp Insurance?

[mbenson]

My husband has been talking with a logger about working as a subcontractor. The guy is really pushing him hard to become a partner rather than a subcontractor. My husband and I have agreed that until he gets at least a year of steady work and a good two years of contracts, that he is not going to even consider being a partner in this guys business. Problem is, the guy keeps pushing, saying he needs to do it and be covered by workers comp and be part of his LLC. I didn't think a subcontractor had to carry workers comp if he is the only person working. I have my own business as a horseshoer and I don't carry comp on myself (maybe I should, I've been stomped into the dirt and had my back wrenched all out of whack several times ) Anyway, sorry for the rambling, I guess my question would be, do we need to carry workers comp for just my husband if he is working as a subcontractor?

Thanks in Advance,

Michele

[1171]

not if you are in Texas; workers comp is optional there.

[mbenson]

1171 Wrote:not if you are in Texas; workers comp is optional there.

Sorry, should have said, we're in Michigan.

[1171]

i suspect that the comp carrier is counting your husband as an employee of the logger and he's anxious to reduce his premiums. once your husband becomes a partner there's an option to exclude the partnership.
while your husband may think of himself as an independent contractor that may not be how workers comp sees it.
this might help
http://www.michigan.gov/documents/wca_PU...4501_7.pdf

the costs maybe large enough that the logger will find someone else to do the work and be willing to be a partner and not be covered.
just my guess.