[CLC-Discussion] Back charge for failure to maintain work comp insurance?

Thu Mar 17 08:46:15 PDT 2016

Thanks, Brian.  Great thoughts.  Much appreciated.  The subsub had actually produced a cert. of insurance before starting the job, but let it lapse during the pendency of the project.

Jared E. Smith
Board Certified in Construction Law

[cid:image12e93e.PNG at be5a6465.4282c7d0]<http://www.rumberger.com>

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From: Brian Solomon [mailto:bsolomon at solomon-law.com]
Sent: Thursday, March 17, 2016 11:24 AM
To: Fred Dudley; Smith, Jared; clc-discussion at lists.flabarrpptl.org
Subject: RE: [CLC-Discussion] Back charge for failure to maintain work comp insurance?

First, the subcontractor should have obtained a certificate of insurance prior to the subsub beginning work.  At this point I believe the proper action would be to withhold from the payment the estimated premium based on the total amount of payments made to the subsub. At final audit, the subcontractor will be asked to provide all payments made to subsubs and then to provide certificates of insurance for each.  For the subsub at issue, there will not be a certificate so subcontractor will be charged additional premium based on the total amount of the payments made to the subsub.  By deducting it now, the subcontractor will already have the money to pay the additional premium.  However, letting any subcontractor on a job without first getting a certificate of insurance is a very risky, and well could be, a very expensive proposition.

From: clc-discussion-bounces at lists.flabarrpptl.org<mailto:clc-discussion-bounces at lists.flabarrpptl.org> [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Fred Dudley
Sent: Wednesday, March 16, 2016 10:28 AM
To: Smith, Jared <jsmith at rumberger.com<mailto:jsmith at rumberger.com>>; clc-discussion at lists.flabarrpptl.org<mailto:clc-discussion at lists.flabarrpptl.org>
Subject: Re: [CLC-Discussion] Back charge for failure to maintain work comp insurance?

This a great  question, Jared, and one for which we need to seek clarification. I’m working on it now with the WC attorney’s I work with on Stop Work Orders and Penalty Assessments, but failure to have required WC coverage is a crime in Florida.

Fred R. Dudley, Partner
Board Certified Construction Lawyer
Dudley, Sellers, Healy & Heath, P. L.
SunTrust Financial Center, Suite 301
3522 Thomasville Road
Tallahassee, Florida 32308
Cell: (850) 294-3471
Direct: (850)692-6368
dudley at mylicenselaw.com<mailto:dudley at mylicenselaw.com>

From: clc-discussion-bounces at lists.flabarrpptl.org<mailto:clc-discussion-bounces at lists.flabarrpptl.org> [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Smith, Jared
Sent: Tuesday, March 15, 2016 4:29 PM
To: clc-discussion at lists.flabarrpptl.org<mailto:clc-discussion at lists.flabarrpptl.org>
Subject: [CLC-Discussion] Back charge for failure to maintain work comp insurance?

Can a subcontractor withhold full payment from a subsub that failed to maintain work comp insurance? (in the past, the subcontractor has been audited by its comp carrier and required to pay additional premium for any subsubs that did not have required coverage—significant dollar amounts).  No written contract exists, so for now am making arguments based on custom and industry standard.  Any guidance or discussion appreciated.

Jared E. Smith
Board Certified in Construction Law

[cid:image002.png at 01D18042.97E020E0]<http://www.rumberger.com>

Main: 813.223.4253
Email: jsmith at rumberger.com<mailto:jsmith at rumberger.com>
vCard<http://www.rumberger.com/90F6E0/assets/files/vcards/Jared%20E%20Smith.vcf>

[vCard]<http://www.rumberger.com/90F6E0/assets/files/vcards/Jared%20E%20Smith.vcf>[LinkedIn]<https://www.linkedin.com/company/rumberger-kirk-&-caldwell>[Twitter]<https://twitter.com/rumbergerkirk>[Facebook]<https://www.facebook.com/rumbergerkirkcaldwell>[Tampa Office]<https://goo.gl/maps/ZpASy>

________________________________
100 North Tampa Street | Suite 2000 | Tampa, FL 33602-5830
Mail To: P.O. Box 3390 | Tampa, FL 33601-3390

The information in this e-mail message is legally privileged and confidential information. If you have received this e-mail in error, please delete from any device/media where the message is stored.
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