Short answer: no — you should not let a business skip or "waive" workers' comp to work on your property, and a waiver you sign won't protect you anyway. It feels like a small favor, especially for a one-person contractor or a long-time vendor. But if someone is injured on your property and there's no workers' comp behind them, the exposure lands on you — through a lawsuit, a statutory-employer obligation, or a bill at your own insurance audit. Here's what's actually going on.
What does it mean to "waive" workers' comp for a contractor?
It usually means one of two things: the contractor asks you to not require proof of workers' comp, or the contractor claims they don't need it — often as a sole proprietor with no employees. Either way, you're being asked to let a business work on your premises without the coverage that pays when a worker is hurt on the job.
The request is common. The reason it's risky is that workers' comp isn't really yours to waive.
Can a property owner legally waive a contractor's workers' comp?
Not in any way that protects you. Workers' compensation is a statutory right of the employee, enforced by the state. You and a contractor can agree between yourselves that you won't require it — but that private agreement doesn't bind the injured worker, and it doesn't bind the state. You can't sign away someone else's employee's right to benefits.
So a "waiver" doesn't transfer or eliminate the risk. It just removes the one thing that would have protected you: proof that the coverage exists. (This is a different thing from a waiver of subrogation, which is a legitimate contract endorsement — don't confuse the two.)
Am I liable if an uninsured contractor's worker is injured on my property?
Often, yes — on more than one front:
- Statutory-employer liability. In many states, a business (and sometimes a property owner) that hires an uninsured contractor becomes the "statutory employer" responsible for workers' comp benefits to that contractor's injured employees. The obligation you thought you avoided lands on you.
- A direct lawsuit. An injured worker with no comp has no benefits to fall back on — so they sue whoever they can reach, which means you. Normally workers' comp is an employee's "exclusive remedy" against their employer, which blocks these suits; with no comp in place, nothing blocks it. (It's the same dynamic behind the action over exclusion.)
- It can exceed any waiver. Because the waiver doesn't bind the worker or the state, none of this liability is cut off by the paper you signed.
The specifics vary by state, but the direction is the same everywhere: letting an uninsured business work on your property moves their risk onto you.
What happens on my insurance audit if a contractor has no workers' comp?
Their cost can be charged to your policy. At your workers' comp or general liability audit, carriers routinely treat payments to uninsured contractors — and to 1099 workers without their own coverage — as if they were payroll to your own employees, and charge premium on them. The usual trigger is a missing certificate of insurance: if you can't produce a current certificate for the contractor at audit, their full cost can be rolled into your payroll. So "doing them a favor" can show up as a surprise premium bill months later. We cover that mechanism in detail in misclassification and your workers' comp & GL audit.
What about a sole proprietor or exempt contractor with no employees?
This is the one legitimate gray area — but it still carries risk to you. A true solo contractor with no employees may hold a valid state exemption (a sole-proprietor or officer exclusion), or carry a "ghost" policy that covers employees but excludes the owner. That can be perfectly legal. The catch: an exemption covers that person's own *business obligation* — it does not mean they're protected if they get hurt on your property. An injured, uninsured solo contractor can still turn to you.
So even with a legitimate exemption: get documentation of it, understand that you may bear the injury risk, and — for anything beyond the lowest-risk task — consider requiring coverage (or an accident policy) anyway.
What should I require instead?
A certificate of insurance showing current workers' comp — before any work starts. The fix is simple and it's the single most important habit for anyone who lets others work on their property:
1. Require a certificate of insurance showing workers' comp and general liability from every contractor and vendor, before they set foot on site. 2. Keep it on file for your own insurance audit, so their cost never gets added to your payroll. 3. For a claimed exemption, get the state documentation — don't take "I don't need it" on faith. 4. Build it into your process so it happens every time, not just when you remember. For how this works, see certificate of insurance vs. additional insured and how to get a certificate of insurance fast.
This is routine for property managers, apartment owners, and HOAs — but it matters just as much for any business or owner letting a contractor on the premises.
Our approach
At Cory Washington & Co., we help property and business owners set up the one habit that prevents this entire problem: requiring and tracking proof of workers' comp from everyone who works on your premises. We'll tell you what to require, review the certificates and any claimed exemptions, and make sure your own workers' comp and general liability are structured so an uninsured contractor doesn't become your liability — at the scene of an injury or at your audit.
Letting contractors work on your property and not sure what to require? Request a quote or a policy review and we'll set up the right process with you.
Frequently Asked
Can I waive the workers' comp requirement for a contractor working on my property?
You can agree not to require it — but that doesn't protect you, and it's almost always a mistake. A waiver you sign is a private choice between you and the contractor; it does not waive the injured worker's statutory right to benefits, and it doesn't stop the state or a court from holding you responsible. All a waiver does is remove your own protection, leaving you exposed if someone is hurt on your property.
Am I liable if a contractor without workers' comp is injured on my property?
You can be. In many states, if you hire an uninsured contractor or subcontractor, you become the "statutory employer" responsible for workers' comp benefits to their injured workers. And because an uninsured injured worker has no comp to fall back on, they have every incentive to sue you directly for negligence — with none of the exclusive-remedy protection that normally blocks such suits. Your own insurance can also be charged for the uninsured contractor at audit.
What should I require from a contractor before they work on my property?
A certificate of insurance showing current workers' compensation coverage — and general liability — before any work starts, kept on file. If the contractor is a legitimate sole proprietor with a valid state exemption and no employees, get documentation of that exemption, and understand you may still bear the risk if that person is injured. When in doubt, require coverage anyway.
This article is general information for business owners, not insurance or legal advice, and does not bind or alter coverage. Policy terms, eligibility, and pricing vary by carrier and state — confirm specifics with our licensed team before making decisions.