A joint program developed by the Home Builders Association of South Carolina and the South Carolina Workers’ Compensation Commission offers an automated system that will notify a general contractor upon midterm lapse of its subcontractor’s Workers’ Compensation policy. This new system solves the problem of a general contractor not being aware of when a subcontractor’s Workers’ Compensation policy lapses midterm due to nonpayment of premium.
Constantly monitoring the coverage status of the subcontractor’s Worker’s Compensation policy has always been an administrative nightmare for general contractors. A general contractor is considered liable for Worker’s Compensation injuries/costs incurred by an uninsured subcontractor.
The program works as follows:
This is a fantastic service that should be of great benefit to general contractors, insurance carriers, insurance auditors, and insurance agents.
The fact is that many smaller subcontractors frequently enter cancellation status due to nonpayment of monthly premiums. This places general contractors at risk in addition to the administrative burden of tracking subcontractors. This new system will likely force subcontractors to pay more attention to their monthly payments to make sure that their Workers’ Compensation policy does not cancel.
We also offer step-by-step instructions on how to use the new service.
3014 Devine St.
P.O. Box 5866
Columbia, SC 29250
1-800-622-7370 Toll Free