In February, 2009, in Hardee v. McDowell, the South Carolina Supreme Court addressed a contractor's ability to shift liability under the South Carolina Uninsured Employer's Fund. The subcontractor worked on various job sites for the contractor. While the subcontractor presented the contractor with proof of insurance purporting to last a year, it turned out that the policy was cancelled a day before an employee was gravely injured. 

            The contractor sought reimbursement from the Uninsured Employer's Fund. The South Carolina Court of Appeals interpreted S.C. Code Section 42-1-415 to require a contractor to obtain proof of insurance from a subcontractor for each particular job for which the subcontractor is engaged to perform work.

            The South Carolina Supreme Court affirmed, finding that a contractor must obtain proof of insurance for each job. In addition, the court clarified that a contractor must obtain proof of insurance every time the subcontractor is actually hired to perform work. Thus, if the contractor hires the subcontractor for a job in January, then for another one in February, the contractor must make sure the subcontractor has insurance coverage at the time of the February engagement.             

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