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Cordero v. Gulfstream Development Corp., et. al., IAB Hearing Nos. 1357959 and 1357671 (February 10, 2011) (Order)

Claimant filed Petitions to Determine Compensation Due against Delaware Siding Company and Gulfstream Development Corporation alleging a construction site work injury on July 31, 2008. At the time of the alleged accident, Claimant was working for Rodriguez Contracting, a subcontractor of Delaware Siding, which was a subcontractor of Gulfstream, the general contractor at the construction site. Delaware Siding obtained a Certificate of Insurance from Rodriguez with an effective date of September 1, 2007 and expiration date of September 1, 2008. However, without any notice to Delaware Siding, the policy was cancelled on March 13, 2008 and Rodriguez was uninsured at the time of the alleged accident.

Delaware Siding and Gulfstream filed motions to dismiss the petitions. Delaware Siding argued that it complied with 19 Del. C. § 2311(a)(5) by obtaining the Certificate of Insurance from Rodriguez and was, therefore, not deemed to insure any workers' compensation claims under the Act. Gulfstream argued that it had no contractual relationship with Rodriguez and had satisfied its obligation under Section 2311(a)(5) by obtaining a valid Certificate of Insurance from Delaware Siding. The Board dismissed the petitions against Delaware Siding and Gulfstream holding that both entities had complied with the statutory requirements set forth in Section 2311(a)(5). The Board held that Section 2311(a)(5) does not create an affirmative duty to assure that a Certificate of Insurance provided by the subcontracting entity, which has appropriate effective dates on its face, continues to remain in effect.

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