Prime contractor / general contractor liability
Potential workers' compensation responsibility imposed on an upstream contractor for workers of certain subcontractors under a state's statutory-employer or contractor rules.
Workers' compensation statutes in many states prevent a contractor from avoiding coverage responsibility simply by subcontracting work. Depending on the jurisdiction, the general or prime contractor can have statutory liability for workers of an uninsured subcontractor or for subcontracted work that is part of the contractor's undertaking.
Virginia's Workers' Compensation Commission explains that contractor liability can arise under its statutory-employer law and tells contractors to maintain proof of subcontractor coverage. New York also warns that general contractors can face claims and premium consequences involving uninsured subcontractors.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.
More terms
- Additional insured
- Agricultural/farm labor exclusion
- Assigned risk pool / residual market
- Casual employment
- CE-200 (New York)
- Certificate holder
- Certificate of election
- Certificate of insurance (COI)
- Civil penalty (uninsured employer)
- Class code
- Competitive state fund
- Construction vs non-construction classification