Alabama Worker's Compensation Law

[Jessica58]

I'm going a different route now. Remember, I moved my elderly parents into my home and pay sitters 15 hrs daily. I was having my parents be the sitters employeer and purchase workmans comp. However, then if the sitters got hurt they would sue my parents (who would be covered by workmans comp) AND me as the property owner who is not covered. My homeowners will not cover the sitters under my liability coverage. Someone told me that I should be the employeer and purchase the workman's comp in my name. Then if the sitters are hurt helping my parents or in my yard (their workplace) I would be covered. Is that true? Does that sound like the way to go? One more question --- If I purchase a million dollar policy and I own 900,000 in assets am I totally protected? On the other hand if I purchase a 500,000 policy and own a million in assets I could be out 500,000 --- right??? (These money figures are just examples) Thanks very much for your help. I am trying to do this right so that I can sleep at night.

[aaron]

Did you explore co-employment as discussed in your other thread? (Alabama providers, identified without any endorsement, include HROplus and Global PEO.)

If you are the employer and carry required worker's compensation policy, that should be the exclusive remedy available to an employee who is injured while working for you.

[Jessica58]

Yes, I did call a payroll company. What is the advantage of co-employment ---- am I even more protected or is it that the workmans comp is more affordable?
I will contact the two sources you provided.
Another question --- How will I know I am getting a good policy or workmans comp company. Are they rated like other insurance companies? Do you have a web site address for the ratings? I've gotten some low quotes, but I know cheaper isn't always better.
Thanks so very much for your help. I really don't want to be an employeer, but have no choice.

[Mr. Knowitall]

As I recall, you were advised of the advantages of co-employment in your other thread. You should call several companies, not just the ones linked above, which are clearly marked as examples and not recommendations.

You can price out the options - paying the employees yourself, the cost of worker's compensation insurance, managing payroll, paying quarterly employment taxes, issuing W-2's, etc., against the cost (and time savings) afforded by a company that offers co-employment services, and choose whichever approach you prefer. You can check with your state's department of labor to see what information they have about various worker's comp carriers in your state.

[Jessica58]

I called the two agencies this morning. One told me that my best bet would be to hire a sitter service who is covered by workmans comp. That way the sitters won't be my employees. I won't have employees -- I'm hiring a service. This is more expensive, but may be my best protection. Do you agree it would be my best protection and the safest way for me to go? I'm hiring the service, not my parents, so that I'll be included in the workmans comp. coverage.

[Mr. Knowitall]

If you want to pick an option that does pretty much the same thing we have already described, but costs more, who are we to stand in your way?

[Jessica58]

Thanks very much for all your help. I did purchase a workmans comp policy last week for domestic workers. I feel wonderful! Now my question is --- do I have to tell my sitters about the workmans comp coverage?
Of course, it is available if they need it, but I hate to put thoughts into their minds. The source of back injuries can be very difficult to prove.

[aaron]

You have to follow state law with regard to informing your employees of their rights. Usually there are a series of posters that you need to post, available from private vendors and/or your state's department of labor.

[Jessica58]

Thanks, I'll call the Dept of Labor this morning. Isn't this crazy -- I have to put a poster in my parents bedroom since that is the sitters workplace.
You've been very helpful - Thanks again.