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Certificates of Insurance – Three Things To Remember


Certificates of Insurance For Workers Compensation

Three things on Certificates of Insurance – This is a continuation of the last post.

Vector Graphic Of Certificates of Insurance In Roll Paper With Red Ribbon

After reading the last post, you may be wondering if span of control over a worker determines if they are independent or not. I take the position that if a company or worker provides a certificate of insurance then the insurance carrier cannot charge premium for them as they have already paid for insurance once.

Why would the main contractor have to re-pay for the same coverage? If there was an accident, the subcontractor’s insurance would pay as primary. They have to pay to statutory limits. The main contractor’s insurance would never have to pay. If a carrier is never going to cover the subcontractors in question, why charge the main contractor a premium? I have received many emails from agents, underwriters, and premium auditors that indicate that my position is wrong. My bottom line is there is no law that says a worker/subcontractor/independent contractor has to be covered twice for the same incident.

Two Contractor Certificates of Insurance In Field

With that said – there are three ways for the main contractors to protect themselves from being overcharged for independent contractors –

1. Read my last post on independent contractors and try to follow the IRS rules as much as possible.

2. Always have current certificates of insurance on file from the subcontractors. If one expires while a subcontractor is working for you, then your Workers Comp coverage may be responsible for an accident or receive a premium bill for the subcontractor.

3. Always make sure your agent and premium auditor have a copy of all the current certificates of insurance for all subcontractors that are working on a job for your company. When the premium auditor requests the payroll information, provide him/her with the current certificates of insurance along with the your employees‘ payroll information.

Up Next – The Ladder of Insurance

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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