From the entry page to update our records to continue with CFA under Spar's ownership...
We are pleased to present you with the opportunity to purchase Workers
Compensation / General Liability coverage should you not have your own for
a low 2.9% of all invoiced amounts. Clients require that all Independent
Contractors have this coverage. If you have your own Workers Compensation
AND General Liability coverage you may fax that to 248.364.8600 and
someone will contact you regarding the discontinuation of the 2.9%
Edited 1 time(s). Last edit at 04/12/2013 08:26PM by elcarev68.
First, SPAR is not MF's new owner. It bought part of MF's operations.
Second, really. Some companies require independent contractors to carry insurance. I don't work for SPAR and I did not work for MF's purple portal, so maybe there is something I'm missing. Unless SPAR's workers are employees, why is there an issue? SPAR is not requiring workers to purchase the insurance through them.
My question is why is this thread in the mystery shopping forum instead of the merchandising forum.
How many of us carry our own separate workers comp policies? (I do not.)
How many companies deduct from assignment pay for workers comp if the IC does not provide proof of their own?
If you are merchandising as an independent contractor, neither the store's nor the merchandising company's insurance will cover you. By its very own nature, merchandising is riskier than mystery shopping. That's why many merchandising companies and their clients require merchandisers to have proof of insurance. (Workers comp is actually a misnomer in this case. It's liability insurance.) Most MSCs cover themselves by simply putting an indemnity clause in ICAs.
One of selling points merchandising companies use (similar to temp. staff agencies) is the clients/stores don't have to worry about things like payroll taxes, insurance for the workers, etc.
Again, this thread is in the wrong forum. You may get much more helpful advice in the merchandising forum.
If you are a full time merchandiser, you definitely should carry insurance, IMO.
No one is forcing you to work for SPAR or buy insurance through them. If you want to work for them, however, you need to either accept the withholding or buy your own insurance.
elcave, this is strictly a requirement of spar and nothing to
do with the clients in this case. The most likely reason they
want you to have it is something happened along the way
and they were sued, and the person won. So now to prevent
that from happening again, they have people get insurance.
Is it cheaper to get on your own instead of thru them? I guess
you would need to look into the cost in your area.
= + = + = + = + = + = + = + = + = + = + = +
There are no stupid questions, but there are a lot of inquisitive idiots
When you try to please everybody, you end up pleasing nobody
I don't work for these companies but my guess is it is not necessarily that the same clients now require this insurance. Instead, I think that SPAR, which has required this for years and has clients that require this, has a uniformity policy regardless of whether a particular client requires the insurance. It makes sense for SPAR, doesn't it? It is much easier administratively. Also, having its workers carry its own insurance policies makes a stronger case that the workers are independent contractors. Finally, it's a good selling point:
"Dear Potential Client,
We have proof that every single one of our workers has a general liability insurance of at least $X amount."
Don't worry about moving the thread. We (posters) can't do it. A moderator will do it if he/she thinks it's appropriate.
Edited 1 time(s). Last edit at 04/09/2013 06:22PM by BusyBeeBuzzBuzzBuzz.
I can see a risk for injury to the IC and/or them causing injury to a client's employee or customer with merchandising that does not exist with mystery shopping. It also looks like letting them deduct might be a cost effective solution especially for a more casual merchandiser. It works out to $29 for every $1,000 earned.
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Worker's Comp is NOT liability insurance. Worker's comp covers the worker if the worker is injured. It does NOT cover liability for the worker damaging something or dropping a ladder on a customer. The store's policy would have to cover the customer. I don't know if the worker could be held liable if they broke a window or something. But these are two different kinds of insurance. I would think the company that hires us would have to carry liability insurance to cover any damage we, as their subcontractor, would do.
You might be able to get a policy that will provide both Worker's comp AND liability insurance but they are not the same. I have done work for companies who have employees and contractors and they require the subcontractors to have their own worker's comp and provide a copy of the policy proving it. (These are construction companies) If they DON'T have proof of worker's comp coverage on all the subs, the company has to pay worker's comp for the subs based on how much they pay them. So if a construction company has to pay $5.63 per $100 for their employees, and they hire a sub who doesn't give them a WC contract and they pay that sub $1000, they have to pay $56.30 to cover that sub under their policy.
I expect this is the same thing (the rate of course is lower because stocking gift cards doesn't carry the same risk as driving a backhoe).
But this is definitely something to think about and to know who is on the hook for any damages if we are running around climbing ladders at Wal Mart. Possibly the other companies simply factor the WC premium on us into their budgets and we don't even know they're doing it. Spar has chosen to pass it on to the contractor. That's their choice.
We either accept it or don't work for them. Or get your own policy, which would cover you on any self-employment job you do and will replace part of your average earnings if you are injured on the job. Those of you who make their living at this might consider that, unless you already have a short-term disability policy and your own health insurance. I have both of those so I don't carry WC insurance on myself.
I pray it does not occur that the last thing I did before I died was vacuum the house or eat broccoli.
> I'm curious to know if Spar would accept a release
> of liability. Paragraph 10 says we are solely
> responsible for any injury to ourselves anyways.
Don't know til we actually get to talk to someone, I suppose
> I'm just amazed at the responses here. What part
> of the $10 per hour do we use for this insurance?
> And my thought is Mystery shoppers should be
> required to carry this as well.
According to the fine print in TrendForce's contractor agreement, they do require mystery shoppers to carry liability insurance.