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You could be liable for subcontractors’ workplace accidents

In the state of North Carolina, the majority of employers are required by state law to carry workers’ compensation insurance for all of their employees, and this requirement extends to subcontractors. If your business is getting ready to hire a subcontractor, it may be wise to request proof of insurance. This is because your business could be held liable if subcontractors have workplace accidents while in your employ.

According to the North Carolina Workers’ Compensation Act, businesses with at least three employees have to carry workers’ compensation insurance. Unfortunately, not all employers comply. If you hire a company that does not have this insurance, you could be setting yourself up for a future problem.

Even when hiring subcontracting companies that employ fewer than three people and that are not required to carry their own insurance, you may still find yourself liable if a workplace accident occurs. Under state law, liability can be attributed to the company that hired the subcontractors, which could be you. As with most laws, exceptions do apply.

If you have or are preparing to hire subcontractors to work for your business, you may benefit from discussing your potential liability with an experienced workers’ compensation attorney before signing any contracts. Such a legal professional will be able to answer any questions you have about workplace accidents and determine whether any of the legal exceptions apply to your situation. In addition, an attorney can ensure your chosen subcontractor’s paperwork is in order and that all legal requirements set forth by North Carolina law concerning workers’ compensation insurance are met.

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