Uninsured Contractor Hurt Working For Me
The situation: A contractor I hired had a helper who got hurt on my premises. The contractor had no workers comp. Am I responsible?
Quick Answer
You may be. Triple-I says most states will treat an uninsured contractor, subcontractor or their employees as your employee for workers comp purposes, so the claim can fall on your business. If you carry workers comp, it may respond. Rules vary by state, so report it to your insurer and check your state's rules.
Read to the end to complete this scenario.
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What Happened
Amira hired a contractor to repaint her boutique. The contractor's helper fell from a ladder and broke an ankle. The contractor had no workers comp. Under her state's rules, the helper could be treated as Amira's employee for workers comp purposes. Her own workers comp insurer handled the claim and later reviewed her process for checking contractors' insurance.
Likely Relevant Policies
- Workers' Compensation
- General Liability
Potential Coverages
Your workers comp policy High likelihood
May respond if the state treats the worker as your employee.
Contractor's workers comp Low likelihood
Not available here, because the contractor was uninsured.
Your general liability Possible likelihood
Generally covers injuries to non-employees, but workers comp rules may take priority.
Possible Exclusions
- If you have no workers comp, your business may face the costs directly.
- State rules on employee status vary.
Questions That Determine Coverage
- Did the contractor carry workers comp?
- How does your state treat uninsured contractors' workers?
- Does your business carry workers comp?
- Did you collect proof of insurance before the job?
Recommended Immediate Actions
- Get the injured person medical help.
- Report the injury to your insurer right away.
- Collect the contractor's contract and any insurance documents.
- Write down what happened and who saw it.
Documents to Collect
- Contract with the contractor
- Any proof of insurance
- Incident notes and photos
- Medical bills if provided
Common Claim Process
Report the injury to your workers comp and general liability insurers. They'll determine under your state's rules whether the worker is treated as your employee. Your insurer may seek recovery from the contractor.
Potential Outcomes
- Your workers comp insurer handles the claim.
- The claim is directed to the contractor if they had coverage after all.
- Without workers comp, the business may be liable for costs.
Risk Prevention Tips
- Collect proof of workers comp and liability coverage before any contractor starts.
- Check the policy dates cover the job.
- Ask whether their policies include helpers and subcontractors.
Frequently Asked Questions
Do I need workers comp if I have no employees?
It depends on your state, and uninsured contractors may count as employees for workers comp.
Can I recover costs from the contractor?
Your insurer may try, through subrogation.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Insuring your business: workers compensation insuranceInsurance Information Institute (Triple-I)
Educational information, not advice: This scenario describes how a loss like this commonly goes, not how your claim will be decided. Coverage depends on your policy's wording, limits and deductibles, your state, and the facts. Confirm specifics with your insurer.