You’ve hired a subcontractor, and they’ve given you their certificate of workers’ compensation insurance coverage. Unfortunately, an incident occurs and a subcontracted employee is injured and needs medical care.
It’s a good thing you have that certificate of insurance to prove coverage. However, after further inspection, your insurance carrier discovers that your subcontractor’s workers’ compensation coverage has since been canceled.
This contractor is now in violation of the Colorado Workers’ Compensation Act, and you as the employer could be liable for claim coverage and for the missing workers’ compensation coverage. This can be a devastating situation for any business. How can it be avoided?
If a subcontractor requests that Pinnacol provide your business with a certificate of insurance, your business is automatically classified in our system as a certificate holder, and you’ll receive notifications of coverage changes.
However, if the subcontractor doesn’t make the request, or if they’re working with an agent, it’s not possible for us to guarantee that you’ll receive these coverage notifications. So, now what?
Use the new verification tool from the National Council on Compensation Coverage (NCCI)
Instead of manually verifying your subcontractors’ coverage on a periodic basis, subscribe to the NCCI’s new verification tool. It’s free, and it will help you verify subcontractors’ insurance coverage status.
How to subscribe:
1. Visit the Workers’ Compensation Verification Coverage.
2. Accept the terms and conditions.
3. Enter the state and employer name you wish to search for.
4. Click on the company to subscribe to coverage notifications.
5. Enter your email address. Check for an email that confirms your subscription.
While this coverage subscription tool is fairly new, early results have been accurate and dependable.
Please note, it may take up to two weeks to receive a notification after a coverage cancellation.