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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

Pre-loaded with this clause selected.

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Related clauses

Questions about limits

Workers Compensation — Statutory — common questions

Why do sponsors care about workers comp?

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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?

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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?

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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.