Contractors and Construction Insurance in Wayne, NJ

Being an active participant in the construction industry means that you fully realize that safety must be the number one priority for both workers and visitors to the worksite. Construction Insurance in Wayne, NJ is vital for all contractors to have in place. This policy will provide coverage in the event that anyone is injured on the job site.

Examining hiring practices

The construction industry is made up of individual workers, each contracted to provide services under distinct terms, from subcontractors to hired employees, and from labor brokers to independent contractors. There are different circumstances with each type of paid worker. With subcontractors, it’s generally advised that you, as a contractor, draw up a contractual agreement while ensuring that participants are licensed, bonded, and insured before hiring them. They bear equal responsibility for the project and may be liable for any issues if a client deems that the work is subpar, or in the event that the job is not completed.

Hired employees, however, don’t fall under the same requirements. For example, when hiring employees, the contractor is required by law to withhold taxes, pay wages, benefits, and comply with all employment laws. They are also required to provide workers comp insurance in the event of any on-the-job injuries. The contractor may also opt to solicit a broker to help provide labor. They will have a similar relationship with these workers who are also considered employees during the course of performing work for the contractor’s company.

Hiring independent contractors means that the contractor pays them directly but isn’t responsible for paying benefits or withholding taxes. There are strict tax reporting requirements in place for working with independent contractors that must be followed to avoid breaking any rules or laws regarding this type of employee, which could result in costly fines if not adhered to.

The Occupational Safety and Health Act (OSHA) require that contractors provide a safe workplace for their employees, one free from any recognizable hazards. Things such as tools, scaffolding, debris, and any large machinery and trucks constantly moving back and forth all pose concerns due to the risks involved in working in these conditions. In any case, Construction Insurance in Wayne, NJ should, without question, be used to provide necessary benefits, along with protecting the interests of everyone involved in the project.