Legal Question in Real Estate Law in California

If your general contractor doesn't have comp insurance, then his contractor's license is invalid, in which case you don't have to pay them even if they performed work. Always check the status of all contractors' licenses with the CSLB.

By each of them providing you a copy of their current coverage docs. 'Real' contractors can't legally work without that.

I think Mr. Stone is confused. A general contractor only has to carry worker's compensation for his or her employees. A subcontractor, on the other hand is usually considered an "independent contractor." In the situation that you described, the subcontractor is an independent contractor of the general.

California law is clear that the employee of an independent contractor who is injured by the subcontractor's negligence can't sue the party who hired the indpendent contractor. (Toland v. Sunland Housing Group, Inc. (1998) 18 Cal.4th 253.)

The exception to this rule, is if the hiring party provides faulty equipment to the contractor's employee, or retains control of safety procedures in the work environment, and is negligent in exercising that control.

If you are overly worried about it, one solution is to require, in your contract with the general contractor, that he or she only use subcontractors that carry worker's compensation insurance. You can add an indemnification clause, requiring the general to indemnify you for any loss you sustain by reason of a claim made by a subcontractor's employee.