Fort Lauderdale, FL · Member since 2016 · 146 posts · 27 votes
I am including a clause in my Independent Contractor Agreement that mandates my General Contractor to provide worker's comp to all of his employees and was just curious as to what the legal ramifications would be if one of his employees was hurt and was not covered? The only party that would be responsible would be the GC correct?
Would the investor potentially be in legal trouble for hiring a GC and not ensuring everything was in order on his end? I plan on obtaining copies of the certificates for worker's comp for all employees but am always interested in knowing what/how to prevent mishaps.
I know that for me (in Illinois) typically I need the workmans comp for the GC and the company we're subbing the work for.
So there was a piece of property that had 2 GCs and Menards owned the property where we were doing the build out in the mall, I had to name them all additionally to my Insurance and Workmans comp. I think on that there was something like 24 additional businesses named on the insurance. Just make sure that you make your GC have a safety program and all his workers are aware of the procedures. (understand that I'm in commercial so the standards tend to be a bit more stringent)
I know that for me (in Illinois) typically I need the workmans comp for the GC and the company we're subbing the work for.
So there was a piece of property that had 2 GCs and Menards owned the property where we were doing the build out in the mall, I had to name them all additionally to my Insurance and Workmans comp. I think on that there was something like 24 additional businesses named on the insurance. Just make sure that you make your GC have a safety program and all his workers are aware of the procedures. (understand that I'm in commercial so the standards tend to be a bit more stringent)
@Kevin Lochen Perfect. Thank you so much. I see you have a construction background as well. Do you happen to know if a GC adds a client to their insurance policy(ies) every time they start a new project? (As in adding a specific individual or LLC/corp. as an additional insured party on the policy, versus simply providing the same document to all clients without having to make adjustments to the policy). If you're unsure, absolutely no worries. Just figured I'd ask.
Then your GC will get sued for coverage and you'll be right behind them.
No one should be on your job without wc coverage. Even an exception is dangerous.
Ask for a certificate of insurance listing you as additionally insured, have the certificate sent to you directly from the agent, and verify coverage monthly.
myfloridacfo.com is the site to verify both wc coverage and exceptions.
Then your GC will get sued for coverage and you'll be right behind them.
No one should be on your job without wc coverage. Even an exception is dangerous.
Ask for a certificate of insurance listing you as additionally insured, have the certificate sent to you directly from the agent, and verify coverage monthly.
myfloridacfo.com is the site to verify both wc coverage and exceptions.
I am not an expert, but contractor decides how to complete the job in safety way, or deny a job. Investor has no control over who the General contractor hires, same with taxes etc, that's why it is called "independent". Texas particularly is not mandatory work comp state for subcontractors.
Each state's wc is different. Florida is a mandatory wc coverage for all construction workers. There is a single get around where the officer of a company can make themselves exempt, but if they're working on the jobsite, they absolutely should have coverage.
You can't tell a GC who to hire, but you as the owner can absolutely require certain types and amounts of insurance coverage and safety requirements which should weed out the bottom feeders.
As most have said above, no contract clause can remove you from liability for worker injuries. You must verify exactly as @Lee Jones suggested. Liability flows Up the food chain.