You may have to pay the hospital bills or death benefits if your contractor doesn’t have workman's compensation insurance to protect the construction workers working on your property.

A construction contractor hires the subcontractors who in turn hire people to work on a construction project. The result is a highly complex employment relationship with the contractor not directly in control of the situation, and the question arises as to who pays the workman’s compensation insurance—the contractor or the subcontractor?

It’s an interesting fact that in Texas, workman’s compensation insurance isn’t required by the law, and some unscrupulous contractors and subcontractors avoid getting workman’s comp for their workers to save money. This lack of foresight can lead to a devastating consequence because if the workers are not covered by workman’s comp and they get hurt on the job on your property, you may be sued and held liable.

Since the construction business has a much higher incidence of injuries and fatalities as compared to other industries, accidents are much more likely; and you, the unknowing property owner, have a significant interest in making sure your contractor and all the people employed by the contractor are properly covered by workman’s comp.

Any questions? Contact Koch Insurance Group for more information.