Life SciencesLiability
Contact
LimitsStandard / Universal

Workers Compensation - Statutory

What this clause says

Workers Compensation insurance as required by applicable state law and Employers Liability with limits of not less than $1,000,000 each accident, $1,000,000 disease policy limit, $1,000,000 disease each employee.

What this means in plain English

State-mandated workers compensation plus a $1M employers liability layer.

What it means for a CDMO program

Texas is the only state where workers comp is technically optional, but every pharma sponsor will require it regardless. If you are a Texas non-subscriber, you cannot meet this requirement without buying WC. Plan for that conversation early.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • workers comp › carries is set → Compliant: WC in place.
  • workers comp › carries is not set → Gap: No WC indicated - Texas non-subscriber status will not satisfy this.

See this in your MSA

Map this clause against your sponsor MSA.

Run the Decoder

Related clauses

Common questions about this clause

Questions about limits

Workers Compensation - Statutory - common questions

Why do sponsors care about workers comp?

Sponsor MSAs require it primarily to confirm you are not exposing them to subcontractor-employee injury claims. The "statutory" requirement just means you carry whatever the state mandates.

What is the Texas state workers comp requirement?

Texas is unusual - workers comp is not mandatory for most private employers, but the alternative ("non-subscriber" status) creates exposure your sponsors typically will not accept. Most CDMOs carry standard statutory comp.

What about a waiver of subrogation in favor of the sponsor?

Standard requirement. Add it via endorsement at minimal cost. Read the next clause in the MSA - sponsors usually require waiver of subrogation on multiple lines, not just workers comp.