Join Date: Nov 2013
Thanked 55 Times in 32 Posts
5 Cousins is located in MI. MI law requires all business' to provide workers comp insurance, just like every other state I'd bet. That means all sub contractors must provide comp also.
In MI, if you are a business with no employees, you work by yourself and maybe only hire subs, you can apply thru the state for a work comp waiver form - meaning you don't have to go thru the BS of minimum policy costs and audits....
Years ago, during the building boom, everyone was "self employed" and a lot of people just carried those waiver forms here in MI.
I have employees, carry comp - now during the yearly audit, they don't easily accept those waiver forms. They want to see how much you paid, how often they worked, what work they completed, their liability ins and how their business is registered. Basically, they want to make sure this sub is a true sub and not some 1099 person working for you. One guy has worked for me for years plowing snow, my insurance refuses to take his comp waiver for whatever reason and I have to deduct comp costs from his pay.
I'd bet that 5 Cousins insurance carrier is dictating this policy and in reality, it really is no different than in the past - the law hasn't changed, you should have always carried comp or some type of waiver.