You hire subcontractors as part of your regular construction operations. You expect your subcontractors to be qualified to perform the work and to be properly insured to protect themselves and you if there is a problem arising from the job.
When qualifying subs based on their ability to protect themselves and you, we suggest you have a written subcontractor agreement with every sub on the job. It should include the following provisions at a minimum:
It is important to note that the Workers’ Comp law makes you responsible to insure workers of uninsured subs and may even make you responsible under many circumstances to insure injuries to a sole proprietor. If you do not receive Certificates of Workers’ Comp from each and every subcontractor, the insurance auditor will probably make a charge for this sub when he completes a payroll audit. If you are told no charges will be made for uninsured subs, you should demand a statement in writing from the insurance company, not agent, that uninsured subcontractors will not be picked up at audit.REPOSTED COURTESY OF MASON & MASON INSURANCEBrian Robertson | Account Executive, Construction Industry Services
Mason & Mason is an insurance agency. We are not members of the Massachusetts Bar Association, the information above is for informational purpose only. We strongly suggest you consult an attorney before making any decisions on the wording and/or use of legal contract documents.