Why workers comp rules vary, and what to verify.

Why requirements vary

States differ on when workers comp is required, sometimes from the first employee, on whether owners and officers can elect out, and on how subcontractors and casual labor are treated. On top of the legal requirement, GCs and owners frequently require subs to carry their own coverage, so you may need it even where the state would not force it.

Subcontractors and the audit

Uninsured subcontractors are a recurring issue: their payroll can be added to your workers comp at audit, and their work can fall to your liability. Verifying subcontractor coverage is both a compliance and a risk-transfer step. Accurate class codes and honest payroll reporting keep the audit clean.

Verify and align coverage

Because the rules vary and change, confirm your obligation with your state workers comp agency, and make sure your coverage and subcontractor process line up with your contracts. This is general information, not legal advice. Rules vary by state and contractor type and should be verified with the licensing board, the relevant state agency, your contract, and your carrier.