Just as a contractor purchases insurance to protect itself, a contractor must insist that the parties down the contractual chain maintain appropriate insurance coverage. This protects the contractor with regard to potential liability to the project owner, as well as, possible responsibility for injuries to employees of subcontractors.
The only way to assure that coverage is in place is to obtain a certificate of insurance. In a recent case, a prime contractor received a certificate of workers’ compensation insurance from a subcontractor. The certificate form was incomplete. There was a job site injury to an employee of the subcontractor. The sub had no comp coverage. The prime contractor argued that its reliance on the
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