Protect Your Clients: Who’s Covering Subcontractors?

December 8, 2021 • Previsor

In Missouri, employers are liable for anyone working on their premises. This includes employees, contractors, subcontractors, and any of their employees. Watch below as Chonna Patterson, MEM’s Premium Consultation Manager, discusses how subcontractors can impact your clients premium.

How subcontractors impact premium

If a subcontractor doesn’t have their own work comp coverage, their wages are included in the payroll of the employer who is retaining their services. Any increase or decrease in total payroll, due to using the services of an uninsured subcontractor or changes in permanent employee wages, directly affects work comp premium. If a business is in a high-risk industry, or their subcontractor is performing dangerous work, their premium could increase significantly. Yet, there is a way to avoid paying more premium for contract work: a Certificate of Insurance (COI). 

Certificate of Insurance

A COI proves a contractor or subcontractor has work comp insurance. When you work with a subcontractor, make sure to ask for a COI first. It is critical to make sure the COI is valid and coverage dates the time when work was performed for your client. To check the COI validity, search The Missouri Department of Labor’s Website to validate the COI or call the insurance agent or agency listed on the certificate.

Additional resources

Workers Compensation and Subcontractors 

Workers Compensation Fraud 

Workers Compensation for Small Businesses 

December 8, 2021
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