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Property & Casualty  wc hard to place 


doug rider, riderinsurance - Bozeman, MT 59718
Reputation: 1354 - Total posts: 88
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Have a new venture that at this point is only hiring independent contractors(1099'ers) as sales reps. Discovery, development, distribution and manufacture of a portfolio of innovative in vitro diagnostic rapid tests kits is the description on the website. On top of that these sales reps will be in multiple states, at least 7 for now and more down the road. The attorney for the client is saying they need to have WC on these ind contractors. I'm having a hard time, better yet no luck finding any company to will even consider this. Any ideas or suggestions would be greatly appreciated.
</br>Thanks
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</br>I should have said they will have employees, (w-2) down the road in the fall
4 month(s) ago
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TeEvans, N/A - Phoenix, AZ 85028
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Are you licensed in all the states? What is the reason they are being turned down? It seems that if they are just sales and no manufacturing Hartford or similar would entertain.
4 month(s) ago
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Greg Heitmann, IPA Risk Management, LLC - Rochelle Park, NJ 07662
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You can't get WC unless the sales force are employees and there is payroll regardless of using a standard market/WC program or a PEO. All WC is driven by payroll.

Besides, if the sales force does not work for anyone else, they most likely most be classified as employees and can't be categorized as independent contractors. Major fines on the horizon.
4 month(s) ago
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Carrie Allen, Keith Balsiger Agency  - Las Vegas, NV 89120
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Hi!

Based upon my experience and a quick review of The Internet, my guess is to find a carrier that will write the company and then use the estimated cost for the independent contractors as payroll and add actual employees when needed. The Independent Contractors are technically employees of the insured if no other coverage maintained.

I hope this helps!

Best regards,

Carrie M. Allen, ARM

4 month(s) ago
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doug rider, riderinsurance - Bozeman, MT 59718
Reputation: 1354 - Total posts: 88
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Mainly because they are a new venture is the reason of decline. The 1099-ers do sometimes work for someone else so that is issue too. The hard to risk companies could be a possibility but usually have a high min premium. Is there a company someone can point me to?
4 month(s) ago
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Greg Heitmann, IPA Risk Management, LLC - Rochelle Park, NJ 07662
Reputation: 1200 - Total posts: 166
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Your client may be walking down a path to major fines by paying these people on 1099. They would be best served putting them as employees on payroll and pay the payroll taxes. Then any standard market will write the WC.
4 month(s) ago
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