North Carolina G.S. 97-19: the certificate that protects you

What the statute says, in plain English

• If you sublet work without getting a certificate that the sub has workers’ comp coverage (from the carrier, or a certificate of compliance for a self-insured sub), you’re liable like the sub would be.
• If you do get the certificate before subletting, you’re not liable to the sub’s employees for compensation, within the term the certificate covers.
• If you pay compensation under the statute, you can recover it from anyone who would independently have been liable.
• Claims go to all liable parties, and the Industrial Commission sets the order, starting with the sub as the immediate employer.

What that means on a real job

Two things matter: having the certificate before work is sublet, and the term on it. A certificate that ends in June protects you through June. After that, you want the renewal. That’s why tracking the end date is the whole game here.

What to do

1. Get a workers’ comp certificate from every sub before they start.
2. Check the term covers the work.
3. Track each end date and chase the renewal. We do this for you.
4. Ask your attorney how your subcontract handles recovery from subs.

Sources: G.S. 97-19 (NC Industrial Commission). Laws and agency rules change. Check the current version.

Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.

A simple routine on every job

1. Before the sub starts, get the certificate and workers’ comp proof, or the exemption paperwork your state allows.
2. Ask for the certificate and keep it with the subcontract.
3. Save a copy with the date you checked and who checked.
4. Put every policy end date on a calendar.
5. Ask a local attorney or broker about anything unusual.