Planning your town's springtime festival, fair, or 5K? Make sure the performers you hire to entertain citizens have their own workers' compensation insurance policy.
Under Maryland law, the principal contractor is liable for injuries to an uninsured subcontractor and the employees of the subcontractor. Furthermore, the law allows for premiums to be charged if a Certificate of Insurance showing proof of workers' compensation coverage for the period worked is not provided. (
Source: MD Labor and Employment Code Ann. § 9-508, "Liability of Principal Contractor for Compensation")
This means that, if you hire someone such as a musician, magician or other performer for your town festival, and this individual does
not have workers' compensation insurance and is injured while working at the fair, your town may be responsible for certain expenses due to the work-related injury. Your town can also be assessed an additional premium based on the amount you paid this performer.
Additionally, "even though a sole proprietor with no employees is not required to obtain a workers' compensation policy to cover him- or herself, it does not preclude that individual from being considered a covered employee under the principal's policy," says Casey Robison, Director of Premium Audit for Chesapeake Employers Insurance.
For these reasons, Chesapeake Employers recommends you get an original version of the performer's (or any subcontractor's) work comp Certificate of Insurance, and be sure the period of coverage on the certificate matches the period when the work is to be performed. For more information, click
here.
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