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Presumably the cost is still passed along since the subcontractor needs insurance for their workers.

If there is a liability that not covered by the insurance the subcontractor can just go bankrupt. AT&T wants to protect their assets.

NY state doesn't let anyone go without paying for worker's comp. I run a company with remote developers who sit at a desk and I am still forced to pay it. Also, contractee will require contractor to have insurance so they can sue them if needed.

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