business insurance

[neil.allied]

i am a drywall contractor(sole prop.)in idaho. my sister and her friend(verbal partnership), do house cleaning and some painting for homeowners and contractors. to help them, i included these on my business policy (including worker's comp.), i have nothing further to do with their clean. & paint. otherwise they would have to come up with a $300 w.c. deposit and ??$ for their own business ins.
together they make under 20 k/yr. say 10 k/yr of that is made on jobs covered under my policy. they are giving my policy number that is in my co. name.
my concern is, should i be collecting monies from these jobs and writing them each a check(minus worker's comp.)then showing that as my income??? which would ofcourse all go back out as cost of labor, and showing "the proper??" reporting trail... or should'nt be a problem for any of us?
the way i see it is they are my subcontractors when using my co. policy, yet no check is written to me and ofcourse no checks written to them. help.

 

[ALawyer]

This is one that as a lawyer I would have to advise you that what you are doing is wrong as these people are not your employees and if there was a problem (say they botch a job, or hurt someone) because you claim they are employees you likely would be sued by their customers, and if there was a WC or other claim it could be denied by the insurance companies as they are not your employees.

But you knew that. Should you keep on doing it? I can't answer or give you any comfort.