i'm covered under HIS INSURENCE?

Discussion in 'Lawn Mowing' started by bobbygedd, Mar 1, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    a guy i know cuts grass , all cash business, he doesn't exsist as a business. when it snows, he plows. he works for someone else,uses his own truck and plow, gets $80 an hour cash. i told him he better watch his butt without insurence. he claims he is covered, through the business owner. i said impossible, how could harry's landscaping just have you covered on his policy, when it's your truck and your plow, and you arent even on his payroll, you're working for cash? is it possible ?
     
  2. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    At the very least getting paid cash he would be considered a sub-contractor, thus requiring him to have his own everything including insurance. But it doesn't matter to the client, because they hired harry's not "no insurance joe". Unless they have a clause in their contract about Subbing out work then Harry's is ultimately liable to the customer, because the work was done under their name.
     
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    so, if the guy driving his own truck hurts someone or damages property, isn't he ultimately liable?
     
  4. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,475

    i don't know an insurance company in the world that would cover an uninsured sub, especially one that is, and has to, own his own equipment.

    my nephew was told the same bs by his lco boss. 17 yr old kid working in the summers, paid on a 1099 and/or cash, uses all the lco's equipment, and uniforms. a real kicker is he tries to charge them for damaged equip or equip stolen off the trailer. even worse from a liability standpoint, the kids all run plows for him in the summer. he's a kid, so how is he supposed to know? the lco runs 8 "employees" this way.
    i know of one parent that has decked him... :)
     
  5. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,475

    the driver is, as well as the owner. personal injury attorneys love having more than one entity to sue, the problem being that the lco probably has appropriate insurance, whereas your buddy does not. personal assets lost, insurance assets lost. oh, and then there's the insurance company attorney who will try to unwind his client (the insurance company, not the lco) because the lco used a sub that was clearly outside the parameters of coverage.

    basically, a huge mess with only the injured party seeing any ultimate positive outcome.
     
  6. sgoalie23

    sgoalie23 LawnSite Member
    Posts: 195

    If I remember correctly, a sub is only considered a sub when that person supplies their own tools, does the job with minimal interference from the general contractor. The general supplying a 1099 does not skirt the legal issues. The 17 year young man may and probably would be considered a direct employee, thereby placing the LCO owner at maximum liability. Also, (the law varies from state to state) a person needs to be of a certain age (18?) to operate certain power equipment. However, that is another topic.
    Mark (sgoalie23's father)
     
  7. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    I don't care what anyone says, there is simply no way in the world I'm in this business without insurance, regardless of whether I'm getting paid off the books. That's a fool's errand.
     
  8. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    operating with no insurance is a big Gamble some people do it though. I think The guy is ultimately responsible but the LCO will get a lot of the direct heat if some thing goes wrong.
     
  9. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,475

    re: what classifies as a sub, you are correct, goalie. my story was just to illustrate the bs some owner's are to happy to fill their "employees" with and the problems that can arise.
     
  10. tfilbert

    tfilbert LawnSite Member
    Posts: 61

    Spoke with my Insurance Carrier (also personal friend) and he said that at least here in Kentucky anything that is done in my company's name would be covered by the liability up to the limit of the policy. The insurance company also has the right to sue my company if they believe I commit fraud and the situation Bobby mentioned would be that, big time. Just my 2 cents.
    Tim
     

Share This Page