Workplace injury protection for small startup company that involves woodworking?

[techzo]

What is the name of your state (only U.S. law)? Florida

I am weighing the expenses and risk for a new company in Florida that occasionally involves woodworking and general machining. I plan on having one initial part-time employee (or independent contractor), with a maximum of two in the foreseeable future. I am personally involved in several companies, however they are all separated with LLCs. This company will also have it's own LLC registered in the state of Florida.

Right now I have the understanding that insurance will not be required for one employee or independent contractor.

My questions given the above are -

If an injury occurs, and no direct fault falls on me or the company beyond general operational hazard with new machines and safety equipment in place, will the company be liable?

Would signing a waiver in the hiring process make any claims they bring forward void?

Would I personally be liable beyond the company's assets in a lawsuit should they sue the company?

How would part time employee vs. independent contractor change the above outcomes?

Thanks for any advice!

 

[cbg]

Although it is true that a company in Florida that only has one employee is not required to have workers comp insurance, it is not prohibited that they have it, either. You can make all of your questions moot by simply buying a workers comp policy, EVEN THOUGH it is not mandated by Florida law. With only one employee, it won't be that costly, and will surely be cheaper than the cost of an accident should there be one.

 

[commentator]

And just FYI, the terms "employee" and "independent contractor" are not interchangeable, as you seem to be passing this back and forth.

 

[techzo]

Correct. I am aware that ICs & Part time employees are two completely different beasts. Which is why I'm asking if either one would affect the outcome differently. This person I would be hiring could go either way -

Option 1. I hire an artisan who already has other 'clients' to receive his goods at a premium, but less hand holding.
Option 2. I get a newbie and train him into my part-time employee. Less money, but more time invested at the beginning.

Knowing what I'm up against in either department will most likely affect how I want to proceed if at all.

Insurance is usually purchased for a catastrophic fall back. Companies who purchase insurance in the workplace, don't set out wanting to use it for little bumps along the way. They are either required to get it, or it gives them piece of mind. I am not required; and would rather not initially pay for the luxury of piece of mind - IF - there are other feasible ways to get by at first.

What I'm interested in is understanding how much personal protection the company LLC will give me in the event that an issue should arise. With adequate safety measures in place, and everything being above board - would I be personally be liable for damages beyond what total liquidation of the company would provide?

 

[cbg]

If you have no employees at all but only hire independent contractors, then you have no liability. Problem is, too many people do not understand the criteria for IC's, hire someone that they proceed to call and treat as an IC, and find out the hard way that they were wrong and what they have is an employee.

 

[LdiJ]

If you have no employees at all but only hire independent contractors, then you have no liability. Problem is, too many people do not understand the criteria for IC's, hire someone that they proceed to call and treat as an IC, and find out the hard way that they were wrong and what they have is an employee.

I agree 100% and will add that its idiotic for any business to not be adequately insured...whether its worker's comp or liability.