Tanner Wilkinson talking with Nate Johnson from Risk Managers, LLC on Insurance FAQs

Q: What is a recap of what we talked about last time?

A: Understanding how liability works with Travel Trailers. When the trailer is hooked to a vehicle, as long as the vehicle has liability coverage, then so does the trailer. When not hooked to a vehicle, you will either need to add an endorsement to the policy or have an umbrella policy to protect you in a liability claim.

Q: What is a 1099 worker?

A: A 1099 worker is an independent contractor whom you pay for a specific task. For example, lets say you are a painter, but you do not have time to paint a house that you contracted to paint. You call another painter and you pay him/her to come paint it. They accept the job and they come do the job in a week or so on their time table, and their supplies. They are not obligated to be there when you say, 8:00 am the next morning, for example.

Q: What is a W2 employee?

A: This individual is a person who receives a regular wage or salary for performing a role in your company. For example, you are a painter and you bring on a person to help you paint a house. They use your tools, show up when you say, go to the job site with you or use one of your vehicles. If they act and are treated as an employee, then they are employees. So, you should have them covered with workers comp insurance, and deducting and filing the taxes.

Q: What do you need when it comes to insurance if you hire a 1099 worker?

A: You will need to collect a certificate of insurance from each of the 1099 workers. If they do not have insurance, then the contractor’s insurance takes on the liability of the 1099 worker which will increase the insurance for the contractor. This is the same for General Liability and Workers Compensation.

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