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<p class="MsoNormal">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.<o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org]
<b>On Behalf Of </b>Fred Dudley<br>
<b>Sent:</b> Wednesday, March 16, 2016 10:28 AM<br>
<b>To:</b> Smith, Jared <jsmith@rumberger.com>; clc-discussion@lists.flabarrpptl.org<br>
<b>Subject:</b> Re: [CLC-Discussion] Back charge for failure to maintain work comp insurance?<o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D">Fred R. Dudley, Partner<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Board Certified Construction Lawyer<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Dudley, Sellers, Healy & Heath, P. L.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">SunTrust Financial Center, Suite 301<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">3522 Thomasville Road<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Tallahassee, Florida 32308<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Cell: (850) 294-3471<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Direct: (850)692-6368<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="mailto:dudley@mylicenselaw.com">dudley@mylicenselaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:clc-discussion-bounces@lists.flabarrpptl.org">
clc-discussion-bounces@lists.flabarrpptl.org</a> [<a href="mailto:clc-discussion-bounces@lists.flabarrpptl.org">mailto:clc-discussion-bounces@lists.flabarrpptl.org</a>]
<b>On Behalf Of </b>Smith, Jared<br>
<b>Sent:</b> Tuesday, March 15, 2016 4:29 PM<br>
<b>To:</b> <a href="mailto:clc-discussion@lists.flabarrpptl.org">clc-discussion@lists.flabarrpptl.org</a><br>
<b>Subject:</b> [CLC-Discussion] Back charge for failure to maintain work comp insurance?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">Jared</span></b><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif">E.
<span style="color:black">Smith</span></span></b><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><br>
</span><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:black">Board Certified in Construction Law</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><br>
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<a href="http://www.rumberger.com"><span style="text-decoration:none"><img border="0" width="150" height="42" style="width:1.5625in;height:.4375in" id="_x0000_i1025" src="cid:image004.png@01D18037.01AC4A00"></span></a><o:p></o:p></span></p>
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<p><span style="font-size:8.0pt;font-family:"Verdana",sans-serif">Main: 813.223.4253</span><br>
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