AN INDEPENDENT CONTRACTOR  SIGNED A "NO CLAIM" WAIVER. AM I PROTECTED?

You’ve hired the best trim carpenter in town and he only works for high-end builders and now he wants to work for you.  You are honored to have him working for you, and your business will thrive with your customers knowing you only use the most skilled craftsmen on your job sites.

But instead of providing you with a Certificate of Insurance (COI) showing that he carries workers’ compensation coverage for his business, he hands you a very simple declaration, neatly typed and single-spaced, stating:

“I am an Independent Contractor and I work for various businesses and individuals and if I am injured on your jobsite, I will not file a workers’ compensation claim against you or your business.” 

He may even sign it to make it official. 

Off to the side he may say that he has his own private health insurance if he is hurt while working. (We will come back to that one another day.)  I’ve seen soooo many variations of this ‘independent contractor’ statement, and they may be valid in some circumstances but I’ve yet to see one.

In theory these sound good.  Really good. Almost too good to be true.  You get a great work product and you save money on your work’ comp coverage. Win/Win Right?  It may actually be true that if this independent sub is injured while working for you that he opts to not file a claim.  Many injuries can be insignificant, sometimes not requiring any real treatment.  Your guy may even have something in the truck to patch himself up.  Gauze and duct tape can work miracles.  A twisted ankle tripping over some debris?  Wrap it and tighten the laces.  Some injuries are mild and might only require a quick stitch or two at the urgent care to get your guy back out on the job without much delay. 

BUT.  What if the incident was serious?  What happens if your sub has extensive injuries?  What happens if your skilled craftsman cannot work for a significant timeframe, or worse, never again?

Unfortunately, the answers to these questions are often found during the claims process.  And if the injury is significant, there will often be a claims process that you and your work comp provider will work through.  Almost always, he is technically your ‘employee’ for workers’ comp purposes and you and your work comp provider may be responsible for the claim.  Every situation is unique so speak to your agent. 

The best way to protect you and your business?  Request a COI before showing proof of coverage before anyone starts work on your jobsite.  A written statement, a verbal promise or even a good ol’ handshake deal will not be enough if the injury is significant. 

The construction business can be tough.   If you need support or have questions, LCI Workers’ Comp has been a trusted resource for more than 35 years.

This information is provided for information purposes only and should not be relied upon as legal advice. Please contact your attorney if you have specific questions regarding a specific item mentioned in this article.