You've hired a subcontractor, and they've provided proof of workers’ comp coverage. Then a subcontracted employee gets hurt and needs medical care.

Good thing they provided proof of insurance, right? 

Upon further inspection, your workers’ compensation insurance carrier discovers your subcontractor's workers' comp coverage isn't active.

The contractor is violating Colorado workers' compensation law, and you could be liable for the subcontractor’s workers' compensation claims and their missing workers' comp insurance. 

That's where the free National Council on Compensation Insurance (NCCI) coverage verification tool can help.

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How to avoid proof of insurance issues

If you work with a subcontractor covered by Pinnacol, they can request proof of workers' comp insurance online. 

In our system, doing so automatically classifies your business as a certificate holder. You'll also get notifications of any coverage changes— including expirations on proof of insurance.

But what happens if the subcontractor doesn't request proof of insurance? 

Or what if it's not possible for Pinnacol to confirm coverage changes because the subcontractor is working with an agent?

Your business might get caught — unaware — potentially leaving you liable.

The NCCI coverage verification tool provides an automated way for you to verify your subcontractor's workers’ compensation coverage.

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Proof of workers’ comp coverage using NCCI’s verification tool

Avoid manually verifying a subcontractor's coverage every few weeks or months with NCCI’s quick and easy, online verification tool. It's important to note discrepancies may arise that you will need to verify manually, and it may take up to two weeks to receive notification of coverage cancellation.

Here’s how to utilize NCCI’s tool to verify workers’ compensation coverage:

1. Visit the Workers' Compensation Verification Coverage website.
2. Read through and accept the terms and conditions.
3. Use the search tool to enter employer information, such as name, state or federal tax identification number (FEIN).
4. Once you get the search results, select the company you want to follow and click "Track Policy."
5. Enter your email address and confirm your email.
6. Once verified, check your inbox for notifications on any coverage change.

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NCCI’s tool can help reduce your business’s risk

The NCCI verification tool is still relatively new. Early results have shown its accuracy and reliability. But discrepancies may arise that you will need to verify manually.

Please note, it may take up to two weeks to receive notification of coverage cancellation.
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Need proof of insurance or workers’ compensation insurance for your business?

Not only does operating a business without workers’ comp coverage leave you financially vulnerable, but it’s also illegal in Colorado.

Buy a next-day active policy in five minutes or less online with Pinnacol. Or connect with one of our trusted local agents for a more personal touch.