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General Liability Insurance And Workers´ Compensation Insurance For Trade Contractors, Home Builders, Remodelers and Light Commercial General Contractors With Savings Up To 38%!

Myth #3: General Contractors Such As Home Builders And Remodelers Don´t Need To Carry Workers´ Compensation If All Of Their Subs Carry A Workers´ Compensation Policy

Myth #3

"I don´t need to carry my own Workers´ Compensation policy because all my work is performed by subcontractors who carry their own Workers´ Compensation policies."

Reality #3

Assuming that you have a valid and current Certificate of Insurance on all of your subcontractors evidencing that they carry Workers´ Compensation, what does this really mean? All that it means is that on the day the Certificate of Insurance was issued, the subcontractor had Workers´ Compensation coverage. But what happens if that subcontractor fails to pay his monthly premium next week and his coverage is cancelled? And what if the insurance agent does not notify you as the certificate holder about his cancellation? (There is no legal requirement that you must be notified since the certificate merely says that the insurance agent will "endeavor to notify.") The end result is that you will have an uninsured subcontractor after all despite your best efforts.

Since you were required to carry Workers´ Compensation under the "4 or more employee or subcontractor´s employees" rule, but did not, you will always lose a direct lawsuit by an injured worker.

The best way to protect yourself is to purchase a Workers´ Compensation policy for the minimum premium of $750 even if you believe that 100% of your subs have their own coverage.

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Sadler & Company, Inc.
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PO Box 5866
Columbia, SC 29250-5866
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