I've just lucked into a position as a freelance baker with a small, up and coming bakery here in NC. Initially this will be home-based. The owner has her own insurance to cover the other aspects of her business (she has several businesses under one umbrella policy). What type and what company would cover the bakers on this side of the business? All the bakers with this endeavor are contractors and she wants us to be covered as well as her business. IndyDebi you may be the expert here and your insight is always appreciated.

I realize this topic has been covered before but its been awhile since I've been on CC. Missed you guys!

Leslie

I think you would just have to call your insurance provider and see what they recommend.

Also, I'm interested in knowing how this type of arrangement works. Do you have to pay for supplies etc? marketing? Or does your 'boss' reimburse you?

I would have my own liability ins. in any case... If someone goes after the bakery then realizes you are sub-contracted... they will go after you too. Never can be too safe.

If you are a contractor, at a minimum you would need to provide a general liability policy with limits equal to her/theirs which also lists them as additional insured.

It may well be that you will also have to have a ghost workers comp policy.

And, due to the tricky nature of the law about contractors, even after you do all of that, you could still be considered her employee and an audit would then require her to pay for for both GL and WC on her part.

In other words, this requires research and excellent sources. Talk to at least one extremely knowledgeable agent. Ask for documentation/statutes that sufficiently answer this question.

Talk to people who deal in WC. And GL. Specifically, with contractors.

People get burned with this all the time. Not every agent is up to speed on this because it is quite complicated these days.

I'm in NC and work in commercial insurance (not an agent).

Hope this gives you some good direction.

Thanks, Ziggy, that will give us a basic direction to go in. Any suggestions of agencies or companies?
Leslie

Sorry, guys, I'm not going to recommend a company. BUT, I will say that you should go with a reputable, highly rated company and just as importantly, find an agent who will take care of you. Cheapest isn't always the best, just like with cakes!

I've been calling around just asking for product liability insurance. Is that the best thing to be checking on? Or is there some other kind of insurance I should be looking at?