Workman's comp. protects the employer and employee in the event of an injury to a worker. If you don't have WC coverage, an injured worker can only sue if you won't or can't pay what he thinks the injury cost him. If you let the word lawsuit escape your mouth, you are talking about multiples of 5 figure bills just for the attornies, let alone the cost of the injury, real or trumped up. Depending on your boat insurance
, it may or not be covered under your boat coverage. The only way to get away from workman's comp. is to hire contractors with their own insurance
The yards are trying to keep from being found liable if any worker is hurt on your boat. Strange how it also benefits there bottom line. It's a case of a shotgun used to cure a fear of litigation. All the yard has to do is have any worker in the yard have proof of being self insured. What's interesting in Hawaii
, a sole proprietorship can buy workmen's comp for their workers but the owner of the company is not covered by workmen's comp. Don't know if that's a general WC rule
or just unique to the Islands. Incorporation will allow the owner to be covered by WC as an employee of his company, even if he owns all the stock.