Tag Archives: independent contractors

Using Contracts to Protect Your Business

This entry is part 5 of 5 in the series Business Contracts

A business should use written contracts with hold harmless and indemnification agreements to its advantage. The days of handshake agreements are disappearing; they may be gone entirely. When hiring a contractor or service provider, or renting or sharing space within a building, only do so based on a written agreement. The agreement should contain as much detail as necessary to define what work is to occur, what service is to be provided, and how or when it is to be done.

All agreements or contracts should be drafted with the help of legal counsel. While sample contracts are available online, there is often a disclaimer at the bottom β€” a disclaimer is another term used to deny liability β€” saying that the website and sample creator are not responsible for errors, omissions or damages of any kind if you use the sample. This doesn’t mean the sample can’t be used to create a draft, but the draft should always be reviewed by legal counsel before it is implemented.

When drafting a contract or agreement, use language, as well as hold harmless and indemnification agreements, designed to protect your business. (more…)

The Dangers of Hold Harmless and Indemnification Agreements

This entry is part 4 of 5 in the series Business Contracts

Hold harmless and indemnification agreements are becoming increasingly important in business contracts. They are elements or clauses within a contract or agreement that can work to your business’s advantage, or they can just as easily work against your business. Hold harmless and indemnification are terms that are used interchangeably, but do not necessarily mean the same thing. As with many things, the devil is in the details β€” or in this case, the wording. (more…)

Business Contracts: Certificates of Insurance and Liability Limits

This entry is part 3 of 5 in the series Business Contracts

To better manage your business, you may hire outside experts or contractors to help maintain your facility or provide a service to your customers. You will enter into agreements when hiring these contractors, and you may be advised to obtain certificates of insurance. These are legal documents designed to protect your business from liability and financial harm. Let’s take a closer look. (more…)

Workers Compensation: Employee or Independent Contractor?

In the world of workers compensation, the subject of employee vs. self-employed independent contractor is complex. Employers are not required to provide workers compensation coverage for independent contractors. Likewise, employers are not responsible for payroll taxes and other legal obligations that are necessary for employees. However, there are consequences for misclassifying an employee as an independent contractor, so it’s important to understand the difference. (more…)