There are companies that pay their employees as 1099’s. In the eyes of insurance we don’t care how the taxes are filed. If they are only working for your insured, they are considered an employee. Do they report to job sites at certain times and complete work under insured’s supervision? If so, they are an employee. If they are a true subcontractor, they need to have their own insurance and your insured needs to have a thorough sub agreement in place transferring risk. If they don’t have insurance, your insured will pick up their exposure at audit on GL and/or Comp. Another thing to keep in mind if your insured is subbing out work, is to get them with a carrier who doesn’t put the CG2294 form on their policy or who will remove it based on a good risk transfer. “Damage to your work done by a subcontractor”.
I’m curious to hear from any agency owners out there who have successfully completed a professional certification (CIC, CPCU, etc.). I’d love to hear some advice on how you carved out time. I completed the AINS over 10 years ago but that was pre-kids so I’m a lot busier now. How did you personally decide to attack the course? Did you carve out 1-2 hours, 4 nights a week, etc? I intend to start the CRM class soon and hopefully the CIC afterwards.
I did mine in-person. Doing them online is virtually impossible. This way I avoided distractions. Carve out the time to do this. Yes, it can be a sacrifice for some. Your ROI will be more than worth it.
Did them in person
How many of you out there are a one man (or woman) show, have eclisped a $1 million book, and refuse to hire? I’m in my first year as an agency owner and looking to get a gauge on the art of the possible. It goes without saying, I’d like to keep expenses down and hold off on hiring as long as possible. If this means ripping my hair out, then so be it.
I respect it! We have a csr, but my book is still small enough that I try to handle most of my own servicing. I genuinely hope you can hang on to the way you want to do business forever. Congrats on having and maintaining your goal.
Im at $1.5 after 2 years and im about ready to rip my hair out but still refusing to hire
it’s a pain. I’m in Georgia and just quoted an apartment complex that the client had a Fannie Mae loan.
We were just having a discussion about this earlier this week in my office. I am an E&S broker and we only have 1 market that is writing the required limits that Fannie Mae & Freddy Mac are demanding. This is causing a pretty big dilemma in the insur
There is no such thing as a 1099 employee. They are either subcontractors or employees. If they are being paid as subcontractors, they must behave like subcontractors. There should be a written agreement in place which outlines proper risk transfer methods, they should have their own GL, WC, etc. If they are paid as 1099 subs but do not have these things in place, you need to closely read the policy language to understand how the policy will respond in the event of a claim and you must also examine how the policy is rating for this exposure.