The recent court ruling in Wentworth v. Becker highlights liability issues and the importance of workers’ compensation insurance for subcontractors.
In 2005, an explosion at a construction site on Plum Island took the life of Timothy Wentworth and severely injured his son, Ezekiel. After receiving workers’ compensation benefits from the general contractor who supervised the job, the Massachusetts Supreme Judicial Court has ruled that the Wentworth family can also sue the general contractor for negligence, the Insurance Journal reports.
At the time of the explosion the Wentworths were employed by Maine-based subcontractor Great Green Barrier Co. Although state laws require it, the company did not carry workers’ compensation insurance.
On the other hand, Henry C. Becker Custom Building, the general contractor that oversaw the job, did carry workers’ compensation insurance and paid benefits to the Wentworths through its insurer, as required by state law. Although Ezekiel, along with Timothy Wentworth’s widow, Cheryl, agreed to lump-sum settlements and received payment for their workers’ comp claims in 2007, Cheryl also filed a lawsuit alleging negligence against Becker.
At first, after a Superior Court Judge ruled in Becker’s favor, it appeared as though the Wentworths’ acceptance of settlements and workers’ comp payments prevented them from suing for a civil claim as well. However, Massachusetts’ highest state court reversed this decision, ruling that the exclusive remedy provision of the workers’ comp statue only applies to employees, and since the Wentworths were not employed by the general contractor, Becker is not immune from the lawsuit.
As quoted in the Insurance Journal article, Chief Justice Roderick L. Ireland wrote in the court’s decision that: “‘We conclude…that suits are not barred against general contractors that were obligated… to pay workers’ compensation benefits of the uninsured subcontractor’s employees… In sum, the immunity does not apply to the defendant (Becker).'”
As the case returns to the lower court, the message it sends is clear: if you hire subcontractors, it’s crucial to ensure that they have proper workers’ compensation insurance in place. If not, you can be held accountable not only to paying workers’ compensation claims, but to being sued under a liability policy as well. For additional information about NH subcontractors insurance and workers’ comp, please subscribe to our blog or contact us.
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