Michigan Residential Builders License Practice Test

Before hiring a subcontractor with a workers' compensation exclusion form, what additional document should be obtained?

1. A Subcontractor Release and Waiver of Liability Form

2. A Non-Disclosure Agreement

3. A Safety Training Certification

4. A Professional Liability Insurance Form

The correct answer is: A Subcontractor Release and Waiver of Liability Form

Hiring a subcontractor who has a workers' compensation exclusion form requires careful consideration of additional documentation to ensure proper risk management and legal compliance. Obtaining a Subcontractor Release and Waiver of Liability Form is essential because this document clarifies the subcontractor's acknowledgment of the risks involved in the work and formally releases the hiring entity from liability for injuries that may occur during the performance of their duties. This can serve as protective legal documentation for the contractor in the event of disputes related to injuries or accidents on the job site. Moreover, it is crucial for contractors to have a clear understanding of their liability exposure when collaborating with subcontractors. This form provides peace of mind by ensuring that the subcontractor is aware of their responsibilities and that the contractor is effectively protected from the ramifications of workers’ compensation claims that could arise out of the subcontractor's work. In contrast, while the other options may have their own importance in certain contexts, they do not specifically address the liability implications related to hiring a subcontractor with a workers' compensation exclusion form. A Non-Disclosure Agreement primarily deals with confidentiality, a Safety Training Certification focuses on training credentials, and a Professional Liability Insurance Form is more relevant to professional services rather than construction work hazards directly. Hence, the Subcontract