General contractor liable if its subcontractor fails to obtain workers' compensation insurance

Earlier this year the Appeals Court ruled that a general contractor is liable to a subcontractor’s employee if the subcontractor failed to carry the required workers’ compensation insurance. Even though the general contractor paid workers’ compensation benefits to the injured employee of the uninsured subcontractor, the general contractor was not released from its independent wrongful death or common law liability to the employee. General contractors do not have immunity from third-party lawsuits brought by injured employees of uninsured subcontractors. See, Wentworth vs. Henry C. Becker Custom Building Ltd.


In the Wentworth case, the general contractor had taken no steps to confirm that the subcontractor it had hired carried workers’ compensation insurance. In finding for the injured employee against the general contractor, Judge Berry stated that “the lesson to be drawn is that general contractors must be scrupulous in demanding proof of workers’ compensation insurance from any subcontractor they engage.”

A general contractor (or an owner hiring a contractor or subcontractor) can require a certificate of insurance from the subcontractor to confirm the types and amounts of insurance that are carried. The certificate should be reviewed to confirm that the company’s insurance does not expire during the course of the project (and that it is renewed if it does expire). If the general contractor (or an owner) wants to be named as an “additional insured” under the subcontractor’s insurance policy, an endorsement to the policy, or a blanket additional insured endorsement, may be needed and not simply the issuance of a certificate mentioning the additional insured status. Because insurance issues can be very complex, companies should consult with their agents or attorneys for advice on insurance questions.