Subcontractors must be covered by Workers’ Compensation insurance. If your subcontractor does not have coverage, they will be included in your policy and you will be responsible for premium payments and claims filed for that subcontractor. To avoid this, you should obtain a certificate of workers’ compensation insurance from your subcontractor before work is started and annually thereafter. A valid certificate of insurance will ensure the subcontractor has insurance.
Certificate ValidationOnce you obtain a certificate of insurance, make sure to verify the coverage by:
NYSIF covered subcontractors: Certificate Validation
Non-NYSIF covered subcontractors: WCB Employer Coverage Search
Out-of-state subcontractors: Obtain a certificate of insurance from the subcontractor employer which specifically lists New York in Item 3A on the employer’s policy information page and their workers’ compensation insurance policy information page.
Certificates of insurance show active coverage as of the date of the certificate. Validating certificates of insurance periodically will ensure coverage is active and will keep your business protected.
Premium AuditYou will be asked to produce all subcontractor certificates of insurance during your premium audit. In order to expedite your premium audit, keep a record of all subcontractor coverage documents you obtain during your policy period.
If during your audit, you cannot produce Workers’ Compensation insurance coverage documents for your subcontractors, your policy premium will be recalculated to include them in your payroll. NYSIF follows guidelines set by the New York Compensation Insurance Rating Board for subcontractor charges.