I AM A HOME BUILDER BUT I LET THE HOME OWNER HIRE THEIR OWN ROOFER.

I have read this statement so many times over the years while reviewing audits and loss control reports.  I’ve heard it directly stated by builders and I’ve even seen insurance agents include it as part of their submission.  Almost always I believe it was written or spoken with good intentions and not to deceive.  It is usually done in an attempt to reduce insurance costs or to offload risk, but it can have unintended consequences and do the exact opposite. Unfortunately, this is one situation that can come back to haunt the builder, the insurance agent and potentially the injured worker. 

A couple of questions to ask:

If you are a home builder, how many homes have you built over the years without a roof?  It seems silly to write but even sillier to ask the question out loud.  The obvious (and correct) answer is ‘never’.  As the general contractor for a new build, you are responsible for all aspects of the construction process.  You are putting your name on the project.  It’s your baby.  You are never going to build a house without a roof.  (Ever.)

Is it possible for the homeowner to hire the roofer directly?  Hmmm…I guess the answer to this question could be yes.  But under what circumstance?  Maybe the homeowner has close ties to a roofer.  Or maybe the homeowner owns a roofing business.  (Both potentially good answers but usually not the case.) 

What happens if a worker falls while slinging shingles, carrying a load up the ladder or while picking up debris on the ground after the install?  (Great question.) 

Can the homeowner be held responsible for the medical treatment and indemnity benefits to an injured worker?  (An even better question that we will look at in more detail later.)

Are you prepared to pay workers’ compensation premiums on payrolls picked up at audit for roofing operations performed? (Yikes.)

A couple of points to consider:

As the GC on the job, you are the Statutory Employer.  Let’s review this definition once more:

A statutory employer is a person or entity that employs another to perform work in the course of a business and is liable for workers' compensation according to a statute establishing such an employment relationship or liability. As the statutory employer for the job, almost everything flows up to you, especially when an injury occurs.  A house needs a roof.  You build the house.  You are responsible for the roof (and those who performed the work).

Always hire a roofer that carries Workers’ Comp coverage. 

Request a Certificate of Insurance from your roofer BEFORE any work begins.  If the job goes on for longer than expected, request another COI.

Check the COI to confirm the name of the entity performing the work and that the coverage dates are current.  When in doubt, call the agent or the company named on the COI.

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.