Legal Question in Business Law in Arkansas

Re: Hiring Independent Contractors

This is not legal advise, it is good business. Always get an indemnity agreement in your contract. And make sure that they carry workers compensation insurance and liability insurance of at least a million dollers. Have them name you as an "additional insured" on the policy and have their insurance company give you a certificate named an ACCORD 27. It should also state that it cannot be changed or cancelled without notice to you.

Make sure your insurance also has a coverage of any gaps that your contractor's policy may have in case you get sued, which you will be if there is an accident.

Also, don't hire contractors that are not reputeable.

If you are going to hire delivery people like Dominos, that is young kids with their cars get an attorney this is a much different problem than hiring an actual delivery services that is a true independant contractor. These kids will probably not be considered by the law as independant contractors. Again, don't risk your business and rely on this letter, get an attorney in your area to specificaly answer your questions.

Re: Hiring Independent Contractors

I am not licensed in Arkansas, only in Montana, and cannot give you specific advice. Generally speaking, most states have their own rules for determination of who is and isn't an independent contractor for tax purposes, for worker's compensation purposes, and for liability purposes as you described. I strongly recommend that you consult with an experienced competent business law attorney in your jurisdiction and get assistance how to draft your contracts and most importantly how to avoid having these independent contractors be determined as employees. In other words, adhering to the criteria which separates the status of independent contractors from employees. Their actions and how they perform the work may mean more than your contract. Good Luck.