Verify Coverage of All Subcontractors

You are responsible for all workers’ compensation claims brought by uninsured subcontractors and their employees, including medical payments for the life of the claim.  To avoid this cost, obtain an original certificate of workers’ compensation insurance from your subcontractor before work is started. Keep the certificate on file for review.

Uninsured Subcontractors

NYSIF follows guidelines set by the New York Compensation Insurance Rating Board for subcontractor charges: Contractors must complete a payroll record of the employees of each uninsured subcontractor to establish the appropriate premium. If payroll records are not supplied, premium is determined as follows:

  • 33.3% of the subcontract price is considered payroll if the subcontract is for mobile equipment with operators (such as, but not limited to, earth movers, graders, bulldozers or log skidders)
  • 50% of the subcontract price is considered payroll if the subcontract is for labor and material
  • 90% of the subcontract price is considered payroll if the subcontract is for labor only

Certificate Validation

Make sure to verify coverage for any subcontractor by validating NYSIF-issued certificates or use the WCB Employer Coverage Search. You should request a certificate of insurance from a subcontractor at the start of doing work with them and annually thereafter.

A valid certificate of insurance ensures the certificate holder that the named party has insurance. Workers’ compensation policyholders who hire subcontractors will be asked to produce the subcontractor’s certificate of insurance during an audit.

Verify Coverage of Out-of-State Employers

New York State requires that employees working in New York State for out-of-state employers must be fully covered for workers’ compensation benefits.

If you sub-contract with an out-of-state employer you must confirm that employer has full, statutory New York State workers’ compensation coverage by obtaining a certificate of insurance from that employer, which specifically lists New York in Item 3A on the employer’s policy information page.

NYSIF policyholders should also obtain a copy of the out-of-state employer’s workers’ compensation insurance policy information page that indicates New York State coverage under Item 3A.

Fair Play Acts Comparison

NYSIF's comparison table details more information about potential subcontractor coverage under the Construction Fair Play Act & Commercial Goods Transportation Fair Play Act.

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