The South Carolina Workers’ Compensation Act holds general contractors liable for injuries sustained by employees of their subcontractors if the subcontractor fails to acquire or maintain proper workers’ compensation insurance coverage. As a general rule, general contractors should request a Certificate of Insurance from subcontractors upon commencement of each job. In the past, general contractors did not have any easy way to identify if a subcontractor’s insurance coverage was cancelled mid-term. Now they do.
In cooperation with the Home Builders Association of South Carolina (HBASC), the South Carolina Workers’ Compensation Commission (SCWCC) has developed a system to notify a general contractor by email if a subcontractor appears to have failed to maintain workers’ compensation insurance. The system is free. However, general contractors must to register for the notification service. Collins & Lacy encourages you to register for this important service as it will help protect you from liability for subcontractors who fail to maintain proper worker’s compensation insurance coverage.