1. A consolidated insurance program must not provide industrial insurance coverage, a comprehensive program of safety or for the administration of claims for industrial insurance for an employee of a contractor or subcontractor who is engaged in the construction of the project that is covered by the consolidated insurance program at any time that such an employee does not work at the site of the construction project.

2. A contractor or subcontractor who is engaged in the construction of a project that is covered by a consolidated insurance program shall maintain separate industrial insurance coverage for its employees who:

(a) Are not assigned to participate in the construction of the project; or

(b) Are assigned to participate in the construction of the project but who do not work exclusively at the site of the project.

3. The owner or principal contractor of a construction project shall reimburse a contractor or subcontractor who bids successfully on the construction project for the cost of providing separate industrial insurance coverage for an employee if:

(a) The contractor or subcontractor set the amount of his or her bid in a reasonable, good faith belief that the employee would work exclusively at the site of the construction project and would therefore be fully covered by the consolidated insurance program; and

(b) Because of changed circumstances not reasonably foreseeable at the time the bid was submitted, the employee worked in whole or in part at a location other than the site of the construction project, requiring the contractor or subcontractor to obtain separate industrial insurance coverage for that employee.

(Added to NRS by 1999, 3144; A 2001, 2453)