Home Improvement Contractor - Licensed Contractors

as a contractor with general liability insurance what is the % that i can deduct from a hired subcontractor wi

i hired a non insured subcontractor what % do I deducct

Public Comments

1. You need to look at your insurance rating page, or call your agent. For general liability, you just increase his pay less materials to the same class code as your employee - an uninsured sub will be treated as an employee come audit time. Same thing on workers comp - having a sub without a cert of ins. will mean they are considered your employee for workers comp purposes. SO. If he's a roofer, you're looking at 15-20% of his cost less materials on GL, and 25% on the workers comp, but check with your agent to be sure.
2. You need to check your State Worker's Compensation Laws whether you can deduct or not; additionally, depending on your State laws, there are different provisions depending on what type of entity you operate under, i.e. Sole Proprietorship, S Corporation, Corporation, etc. Note that any damage caused by the uninsured subcontractor on any project will leave you 100% liable and claim could be made against your insurance for which you will be responsible for all fees and premiums. Your insurance could go up as well.