August 19, 2020 | V3 Views:

What if one of your subcontractors gets injured on the job and files a claim under your policy? And you forgot to ask and they failed to tell you that they did not have their own workers’ comp coverage. You are, in most states, responsible and it will cost you for years to come! Not only will you incur additional premium charges at audit, the low loss ratio and experience mod you’ve worked so hard to create could be gone in a flash.

Thankfully this is just a bad dream, you remembered asking and verifying that they had their own worker’s compensation coverage. Ensuring all your subcontractors have their own workers comp coverage is the only way to protect your business from uninsured subcontractor injuries.

Here’s a short list of questions you should ask every subcontractor.

1. How long have you been in business?
2. Are you licensed? (obtain a copy)
3. Do you have your own worker’s comp policy? (obtain a copy)
4. Do you subcontract any of the work? If so do you require the subcontractor to have their own coverage?
5. Who’s doing the work and are they properly trained?
6. Do you have a written safety program for your employees?
7. Do you have someone designated as the safety coordinator while performing work?
8. How will the work site be left at the end of the day?

Maintaining certificates of Insurance for each of your subcontractors will protect you from unwanted costs and claims.