Does Groundcheck verify workers' compensation insurance?

Workers' compensation verification has two layers: the licensing board layer (public, captured by Groundcheck) and the carrier layer (private, must be verified directly).

The licensing board layer:

Every state contractor licensing board requires contractors with employees to maintain workers' comp insurance. The board publishes the contractor's WC account status: Current, Lapsed, Exempt, or Not Applicable.

- Current: the board has verification (typically from NCCI's WC Insurance Coverage Verification service or directly from the carrier) that a policy is in effect at the time of the most recent check. - Lapsed: the policy was canceled or expired and has not been renewed. The contractor is in violation. - Exempt: the contractor has filed a sworn affidavit attesting to no employees, qualifying for an exemption. Subject to penalty for false affidavit. - Not Applicable: the licensing structure does not require this contractor to maintain WC (rare).

Groundcheck (earthmove.io/trust) pulls this status from the state licensing board on every report. A "Lapsed" status drives a Conditional or Caution verdict; a "Current" status is one input among many to a Clear verdict.

The carrier layer:

The board's view can be stale by days or weeks. A contractor whose policy was canceled yesterday may still show "Current" on the board lookup today. For project-critical verification:

1. Request a Certificate of Insurance from the contractor naming you as cert holder, with workers' comp specifically listed. 2. Call the named carrier. Ask: "Is workers' comp policy [number] in force as of today? Is the named insured [contractor entity]? What is the effective date and expiration date? Is there a pending cancellation notice?" 3. Confirm the policy covers the qualifier and all workers actually on your job. Some policies cover only the named insured plus regular employees, with "any other workers" excluded — meaning a temporary or subcontracted worker is not covered.

Why workers' comp matters specifically:

- An injured worker on your property has a right to workers' comp benefits regardless of fault. Without coverage, the worker's claim goes to YOU as the homeowner — your homeowner's insurance, your personal assets, or both. - Workers' comp claims are involuntary. The worker cannot waive the right; you cannot indemnify it away in a contract. - Premiums for residential GCs and trades are 2-15% of payroll depending on classification. Contractors operating without WC are saving substantial money at your expense.

Common workers' comp fraud patterns:

- Sole proprietor exemption claimed by a contractor with employees. If any worker on the job (not a separately-licensed sub) is being paid by the contractor, the exemption is invalid. - Mis-classification. Treating employees as 1099 independent contractors to avoid WC. The IRS and state labor departments are aggressive about reclassifying these. - Policy lapsed mid-project. The premium audit at year-end may show payroll above what was disclosed, triggering premium increases and cancellation. - Out-of-state coverage. The policy covers work in the contractor's home state but not in your state. Cross-border contractors often lack coverage in the project state.

Defenses:

- Verify WC status via Groundcheck before signing (the licensing-board view). - Request a fresh COI with WC line item explicitly listed, naming you as cert holder. - Call the carrier directly to confirm policy is in force, named insured matches, and your state is covered. - Reject contractors who cannot produce current WC documentation. - For sole proprietors claiming exemption: verify the exemption certificate at the state board and confirm no employees are on the job.

Groundcheck's limit: licensing-board status is the closest public-records signal available, but it is not real-time. For verification that matters to your specific project, the insurer call is mandatory.