If a subcontractor without a workers' compensation plan is injured, how is the loss paid?

When a subcontractor without a workers' compensation plan suffers an injury, the employer's liability comes into play. In this scenario, the employer can be held liable for the injuries sustained by the subcontractor. This means that the employer would be responsible for covering the costs associated with the injury, including medical expenses, potentially lost wages, and other damages as applicable. This legal principle is rooted in the idea that employers have a duty to ensure a safe working environment and provide coverage for accidents that occur during the scope of work.

While subcontractors usually carry their own insurance, in cases where they do not, the burden of the costs falls on the employer's liability. It's essential to understand that this liability is distinct from workers' compensation; in situations lacking proper insurance, employers may find themselves facing legal claims from injured subcontractors seeking compensation for their injuries. This approach emphasizes the obligation of employers in ensuring workforce safety and being prepared to manage injury costs effectively.