Open Forum

I am interested in learning about insurance options and/or liability waivers for contractors who are working onsite but are not LLC's and therefore are not eligible to purchase their own liability coverage. The example prompting this inquiry is a person who has a full-time job and does occasional work on weekends (approximately 4 times a year).

Any and all suggestions appreciated, including references to other conversation strings on this platform. 

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Ellen Endslow
Director of Collections/Curator
Chester County History Center
West Chester PA
Chester County History Center
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Hello Ellen,

In regards to your query about insurance coverage for contractors working onsite but ineligible to get their own liability insurance as an LLC, would these contractors be considered volunteers rather?  As a non-profit institution, you may be able to get coverage for your volunteers as part of your general liability coverage.  I often add this type of coverage to my 501c3 clients.  Typically, the coverage will allow a certain number of volunteers to be covered doing certain type of work.  Also, you may want to look at your current workers comp insurance policy to see whether volunteers are currently covered, and if not, if you can add them.

In lieu of this person not being a volunteer due to their remuneration from your institution, take a look at your WC policy - it should cover part-time contractors working on premise, or perhaps you can add it.

Please reach out with any additional questions.

Kindly,

Orit

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Orit Manham
Insurance Advisor
w3blk.com
Boulder CO
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Original Message:
Sent: 09-15-2023 02:44 PM
From: Ellen Endslow
Subject: Insurance coverage for external vendors

I am interested in learning about insurance options and/or liability waivers for contractors who are working onsite but are not LLC's and therefore are not eligible to purchase their own liability coverage. The example prompting this inquiry is a person who has a full-time job and does occasional work on weekends (approximately 4 times a year).

Any and all suggestions appreciated, including references to other conversation strings on this platform. 

------------------------------
Ellen Endslow
Director of Collections/Curator
Chester County History Center
West Chester PA
Chester County History Center
------------------------------

Hi, Ellen.

I am an exhibit designer and I operate a Sole Proprietorship and an LLC (Partnership).

Anyone can get general liability insurance regardless of how their business is established. However, it is tricky to find insurers that are willing to take on small businesses, and independent contractors. For my sole proprietorship, one of the local State Farm agents was able to set me up ( Allstate was unable to accommodate me in my area, CA.)  A $ 1 million coverage policy runs about $400/year (I assume this will vary by local). Again, this is general liability, Professional Liability ( or Errors and Omissions) was a lot more. I also carry an Umbrella Policy, again $ 1 million per incident in coverage, and it is about the same as the General Liability policy annually.  In my experience, the general liability policy is enough for consultants, graphic designers, and other off-site workers. Sometimes I have to push back on the contract writers because they use default language that covers on-site construction workers and I have to convince them that the level of risk is completely different for an offsite consultant. Often they will waive the higher levels of insurance. Generally, they want to know that the subcontractor has the self-employed equivalent of Workers Comp insurance and General Liability policy covers that. 

Bart

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Bart Hays
Principal/Operations
Pacific Grove CA
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Original Message:
Sent: 09-15-2023 02:44 PM
From: Ellen Endslow
Subject: Insurance coverage for external vendors

I am interested in learning about insurance options and/or liability waivers for contractors who are working onsite but are not LLC's and therefore are not eligible to purchase their own liability coverage. The example prompting this inquiry is a person who has a full-time job and does occasional work on weekends (approximately 4 times a year).

Any and all suggestions appreciated, including references to other conversation strings on this platform. 

------------------------------
Ellen Endslow
Director of Collections/Curator
Chester County History Center
West Chester PA
Chester County History Center
------------------------------

Thank you to everyone who has posted here and privately regarding potential insurance options. In addition to this public thank you, my intent is to share information that might be useful to those who don't encounter this situation often. 

The crux of this situation is that the vendor in question lives in Delaware. As a result, he is unable to simply purchase liability insurance without establishing an LLC. This is straight from his insurance agent. We believe we are closing in on an option that is sound and agreeable to everyone. But in the meantime, be mindful about the state's rules in which the vendor lives.

Thanks again.

------------------------------
Ellen Endslow
Director of Collections/Curator
Chester County History Center
West Chester PA
Chester County History Center
------------------------------

Original Message:
Sent: 09-18-2023 12:36 PM
From: Bart Hays
Subject: Insurance coverage for external vendors

Hi, Ellen.

I am an exhibit designer and I operate a Sole Proprietorship and an LLC (Partnership).

Anyone can get general liability insurance regardless of how their business is established. However, it is tricky to find insurers that are willing to take on small businesses, and independent contractors. For my sole proprietorship, one of the local State Farm agents was able to set me up ( Allstate was unable to accommodate me in my area, CA.)  A $ 1 million coverage policy runs about $400/year (I assume this will vary by local). Again, this is general liability, Professional Liability ( or Errors and Omissions) was a lot more. I also carry an Umbrella Policy, again $ 1 million per incident in coverage, and it is about the same as the General Liability policy annually.  In my experience, the general liability policy is enough for consultants, graphic designers, and other off-site workers. Sometimes I have to push back on the contract writers because they use default language that covers on-site construction workers and I have to convince them that the level of risk is completely different for an offsite consultant. Often they will waive the higher levels of insurance. Generally, they want to know that the subcontractor has the self-employed equivalent of Workers Comp insurance and General Liability policy covers that. 

Bart

------------------------------
Bart Hays
Principal/Operations
Pacific Grove CA

Original Message:
Sent: 09-15-2023 02:44 PM
From: Ellen Endslow
Subject: Insurance coverage for external vendors

I am interested in learning about insurance options and/or liability waivers for contractors who are working onsite but are not LLC's and therefore are not eligible to purchase their own liability coverage. The example prompting this inquiry is a person who has a full-time job and does occasional work on weekends (approximately 4 times a year).

Any and all suggestions appreciated, including references to other conversation strings on this platform. 

------------------------------
Ellen Endslow
Director of Collections/Curator
Chester County History Center
West Chester PA
Chester County History Center
------------------------------