Joe Martosella, the senior vice president and general counsel for Philadelphia-based general contractor Buckley & Co., says his company’s workers’ compensation insurer paid out “three very serious claims” that cost the insurer $5.5 million total over the past year.What was unusual was that the claims were made against Buckley & Co. by employees of subcontractors who should have been carrying workers’ compensation coverage of their own. In most states, workers’ compensation statutes require employers to have insurance to pay wages or medical costs of injured employees. In exchange, the laws generally prevent employees from making claims of negligence against legally
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.