Contractors are often asked to carry Workers Compensation insurance even though they do not have employees. The conversation is usually very similar. “Why do I need to carry workers comp when I don’t have employees?”
This is true. However the minimum premium workers compensation policy that contractors are required to take out will cover the General Contractor more than the Sub Contractor that is buying the Workers Compensation policy.
The minimum premium policy also called an “if any” policy covers the general contractor in two ways. 1) Because the Sub Contractor has their own Work Comp policy, the Sub Contractor cannot be counted as an employee for the General Contractor. Thus, they cannot be included as payroll for the general. 2) if the sub contractor becomes injured on the job, they cannot file a claim under the General Contractors Work Compensation Insurance.
As you can see, the Sub Contractor buys the insurance, but it really provides protection for the General Contractor. This is a requirement to get on a jobsite for most sub-contractors.
For additional information or a quote on your Minnesota Workers Compensation policy, fill out the contact form listed below.