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cutman2000
12-21-2011, 06:23 PM
Im getting ready to do a job for a company(12/2011). I wont have insurance until around Feb(2012). They emailed me a waiver to sign. It has me in the waiver as an individual and my company, which is an LLC separately. My concerns is:
#1. Is this ok to sign a contract holding me liable and my LLC company liable?
#2. How would I cancel me as a liable individual once my insurance becomes established under my companies name and I continue to work for this company?

I don't understand why I would have to sign as an individual also if my company is LLC. What would be the purpose of having an LLC if they want me to sign separately as an individual also, which they could sue me along with my company. Is this politically correct on their part?

wbw
12-22-2011, 11:56 AM
I am not really sure what you are asking. What type of waiver? Give us some more info and you will get some responces.

KrayzKajun
12-22-2011, 11:59 AM
why dont you have insurance now?

GreenI.A.
12-22-2011, 02:36 PM
A common misconception of having an LLC is that it removes personal liability. It does not. As a solo operator, if you do something which causes damage or harm to others then the company can be sued as well as you. You are then liable for anything you are found personally at fault for. Where LLC seperates you personally and the business is if the act is caused by an employee and was beyond your control. For example an employee causes severe damage due to neglect on a customers property or causes an accident when running a red light. Then the business can be sued and the employee who caused the act, you are personally protected. Now say the employee, who ran the light did so because the brakes failed and it is found that the vehicle was not properly maintained. You, as the owner can then be personally sued, as you personally neglected to maintain the vehicle.

I have had to sign a simular insurance clause for one of my large contractors I sub for doing installs. It is basically so if I destroy one of their 5 million dollar homes, I cant just file bankruptcy and shut down the business, I will still be personally responsible for what is found to be my fault. Most insurance companies will add a clause to your general liability to cover you personally for anything you are sued for relating to the business.

DA Quality Lawn & YS
12-22-2011, 03:29 PM
start your insurance now and then problem solved.

JB1
12-22-2011, 03:34 PM
sign a waiver and something happens, your still screwed.

cutman2000
12-22-2011, 04:52 PM
They want me to sign as an individual and my company. 2 separate liable parties, me and my (LLC)comapny. Why would I sign as an individual, leaving me personally liable?

Also I didnt know I could get personally sued if I owned(the LLC company) and was responsible for the accident. So the LLC protects me personally from my employees costing me money by being sued, but not myself if I caused or was responsible for the accident?

JContracting
12-23-2011, 01:02 AM
Ask an your attorney or cpa to get the correct answer. Not saying these guys don't know anything but I take anything on here related to laws, insurance, business structure, etc with a grain of salt.
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GreenI.A.
12-23-2011, 07:00 PM
They want me to sign as an individual and my company. 2 separate liable parties, me and my (LLC)comapny. Why would I sign as an individual, leaving me personally liable?

Also I didnt know I could get personally sued if I owned(the LLC company) and was responsible for the accident. So the LLC protects me personally from my employees costing me money by being sued, but not myself if I caused or was responsible for the accident?

My history with this was back about 7=8 years ago I worked for a company. I rearended a car stopped in trafic and caused a pretty serious 5 car accident, 3 people with serious injuries, 1 person medflighted. Because I was an employee, the owner was protected from the original suit. The company was sued and I was sued personally. During the investigation it was found that the ABS brakes were faulty, the owner did his own maintenance on the vehicles, he was then added onto the law suit as well. Thats how I learnt that the vehicle/equipment operator can be sued weather they are the owner or an employee.

When I set up my LLC, I worked extensively with my attorney on this and got alot of imforation. I basically have to liability insurances, my regular General Liability, and then a personal policy that only comes into effect if I am personally sued due to business issues. But still double check with your own attorney, because laws could be different in your state

NEW CITY LAWN CARE LLC
12-23-2011, 07:43 PM
Why are you working period without liability insurance? Would you drive your truck without insurance? or maybe you dont even have vehicle insurance either, explain your situation for not having insurance and/or why are you waiting to get insurance?

DiscoDave
12-24-2011, 11:51 AM
You will see more and more of this. Companies are tired of contractors establishing an LLC, causing damage to their property then closing the LLC and reopening under a new LLC leaving the property owner paying for the damage the contractor caused.

Your option is to either negotiate that out of the agreement or do not except the contract. Their opton is to not do business with a contractor that will not except liabilty for damage they may cause.