The Home Contractor and Workers' Compensation Insurance
In Massachusetts, all employers must maintain workers' compensation insurance for their employees. This protects the employer if an employee is injured on the job, and it protects the employee as well. For the homeowner, it is imperative that a contractor maintain workers' compensation insurance for his employees. If the contractor does not maintain a policy, then an injured worker may try to show negligence on the part of the homeowner.
I am not an expert on workers' compensation insurance, but I share an office with an attorney who specializes in this area. Her name is Joyce Davis, and her website, http://www.joyce-davis.com, provides excellent information about this area.
As a homeowner, I would require that a contractor provide me with a copy of his certificate of insurance. A contractor should require the same from subcontractors. This simple step can prevent disastrous consequences down the road.