Hiring Contractors For Your Business
Posted On: 03/06/21 - 0

Hiring Contractors For Your Business

What You Need To Know To Protect Your Small Business

What you need to know if you hire contractors for your business without their own WCB-Alberta coverage.   You may be responsible for paying premiums on their behalf if they are injured at the job you hired them for? Providing coverage not only protects the worker, it also protects your small business and you from a potential lawsuit.  A lawsuit that you could have prevented if you were well informed prior to the work starting.

Here Are Practical Tips to Limit Your Liability When Hiring A Contractor

To begin with, before a contractor or subcontractor starts, ask them to provide an up to date clearance letter for proof of WCB-Alberta coverage. Always ask for this letter before the work starts.  You could end up in a heap of  trouble if you forget to ask for this all important question and have the proof in hand before the job starts.

Your Sub-Contractor Has Outstanding WCB Premiums

Secondly, be aware.  When hiring contractors for your business, find out if they have an outstanding balance on their WCB account.  You want to do this before you hire that worker for the job.  You could be responsible for those outstanding premiums in the event of an accident on the job. 

How Can You Get Insurance If The Contractor Is Exempt?

If your contractor is exempt from WCB and does not have optional coverage, you can apply for a deeming order. This would cover them as your workers and protect your small business. Once approved, you will be covered from any potential lawsuits in your business. You will pay premiums on their earnings and if they are injured, the claim will be charged to your account. Make sure you include the directors or business owners of the subcontractors in your deeming order to ensure you have full protection.

If you need further assistance when it comes to your small business matters call us today.  Our services include accounting, bookkeeping, business plans, payroll, and business development advice.  

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Edmonton, Alberta.
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780.482.7297