Accidents at work can be costly. The cost of medical treatment and lost wages can be overwhelming. Having workers’ compensation insurance to rely on is the best for an employer and employee to ensure each one is fairly treated if an employee is injured at work. Independent contractors and subcontractors can benefit from workers’ comp insurance as well. Learning as much as possible about worker’s comp coverage is important before you actually need it.
What Is Workers’ Compensation Coverage?
Workers’ compensation insurance is a mandatory policy that employers must pay for to protect themselves and their employees. It will cover the cost of an employee’s medical bills and a percentage of their lost wages while they are recovering from a work-related injury. In return, the employee will not take legal action against their employer. It is a compromise that benefits both parties.
Is Workers’ Comp Really Needed by Independent Contractors?
Independent contractors are normally not required to purchase a workers’ comp policy if they are the only person working. You can purchase a policy for yourself even though it isn’t required. The situation starts to change, however, once you begin to hire employees. If you have a partnership or sole proprietorship, you still may be exempt from having to purchase workers’ comp insurance. Each state has its own rules and regulations regarding this type of coverage. You should occasionally check to find out if anything has changed.
Do Independent Contractors Need Workers’ Comp for Their Employees?
Independent contractors must carry workers’ comp insurance for employees who work for them. The mandatory coverage can ensure that each worker receives the medical treatment they need, along with compensation for any missed wages. Filing a workers’ comp claim will allow the employee to get the benefits they need. If the claim is denied, an appeal can be filed with the workers’ comp court. It’s important to be as honest as possible when filing a claim.
Does a Subcontractor Need to Be Covered By an Independent Contractor?
Even though you may not have to carry workers’ comp insurance on yourself, you should always carry a policy for subcontractors who work for you. Many independent contractors who hire themselves as a subcontractor have their own policies. It’s important to make sure they have insurance on themselves. Having a workers’ comp policy in place before they start to work for you will ensure that you are protected if they experience a work-related injury while on the job.
Do Independent Contractors Need Workers’ Comp from Their Employers?
It’s not your job to make sure an employer has workers’ comp insurance. While it’s important that they have it, your rights to compensation will ensure you get taken care of. If your employer is a “non-subscriber” and doesn’t have workers’ comp coverage, you will more than likely win your case, and the employer will still be forced to pay for your medical expenses and lost wages.
What Kind of Insurance Is Needed by an Independent Contractor?
It’s important to have a quality commercial policy with a general liability policy in case an accident does occur. Having a good policy in place will protect both you and your business and save you money in the long run. Clients are also more likely to choose a contractor that has their own insurance and a solid reputation for quality work.
Owning a business is a lot of responsibility. Having the right workers’ compensation policy will protect your business and save a lot of stress in the long run. Contact our agents here at Artisan Insurance Solutions to learn more about our commercial and workers’ comp policies. We have years of experience and can work with you to find a solution.