Subcontractor Arrangements/General Contractor Liability

The principal contractor can be liable for the unpaid premium of his subcontractors or independent contractors who fail to secure workers’ compensation coverage.

If you are a principal contractor:

  • Require a Certificate of Premium Payment from subcontractors verifying that they have workers’ compensation coverage for their workers.
  • If the subcontractor has provided proper coverage, the subcontractor’s payroll is not normally included in your payroll.
  • Show proof of a North Dakota contractor’s license
  • North Dakota Century Code § 65-01-02 16 (c) states that persons employed by a subcontractor, or by an independent contractor operating under an agreement with the general contractor, for the purposes of North Dakota’s workers’ compensation law, are deemed to be employees of the general contractor. The general contractor is liable and responsible for the payments of premium for the coverage of these employees until the subcontractor or independent contractor has secured the necessary coverage and paid the premium for the coverage.
  • If requested by North Dakota Workforce Safety & Insurance (WSI), it is the responsibility of the contractor to provide a list of all subcontractors.