Workers’ compensation insurance plays a vital role in protecting employees injured on construction projects while also reducing liability for property owners and contractors. Because Massachusetts law generally requires employers to maintain workers’ compensation coverage, disputes over whether a contractor has obtained the promised insurance can have significant legal and financial consequences. A recent Massachusetts decision illustrates how a contractor’s failure to satisfy contractual obligations regarding workers’ compensation insurance helped justify termination of a construction contract and supported liability under Massachusetts consumer protection law. If you have questions about workers’ compensation benefits or coverage, you should consult with a Massachusetts workers’ compensation attorney to understand your rights.
Case Setting
Reportedly, the plaintiffs hired the defendant construction company to renovate their two-family residence in Watertown pursuant to a written contract priced at more than $100,000. As part of the agreement, the contractor expressly agreed to obtain commercial general liability insurance and workers’ compensation insurance covering both its own work and the work performed by subcontractors on the project. Because one of the homeowners worked in the insurance industry, insurance coverage was an especially important component of the agreement.
Allegedly, after the contract was signed and the plaintiffs paid an initial deposit of $30,300, they repeatedly requested documentation confirming the required insurance coverage. The contractor maintained that his company was exempt from maintaining workers’ compensation insurance because he was its sole employee but represented that subcontractors working on the project would nevertheless be properly insured. The plaintiffs remained dissatisfied with the documentation provided and questioned whether the contractual insurance requirements had been satisfied. Continue reading →
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