Worker’s Comp For Independent Contractors

Worker’s compensation is meant to provide protection for your employees in case of an accident at work. While your company pays independent contractors, they are not considered employees, which means they are not protected by worker’s compensation. Knowing how to classify an independent contractor can help to ensure that you do not pay high premiums for non-employees. There are many ways to determine if a worker is an independent contractor, including:

• Lack of control and direction – independent contractors provide a service without any direction. They control every aspect of the service, including the method to get it done. Independent contractors work independently to get a job done, free from control and direction from the company that hires them.
• Hiring and pay – employees receive their wages on a salaried or hourly basis, while independent contractors typically receive their payment by the job that is done.
• Equipment – as a business owner, your employees need some type of equipment to get the job done, which you provide. On the other hand, independent contractors will provide their own equipment in order to get a job done.
• Training and character or work – a worker is typically an independent contractor if they only do one, very skilled job for multiple companies. Employees are trained by their employer to do many different tasks, but only for the one company.
• Written agreements – written agreements stating that a worker is an independent contractor may not be enough to qualify the worker. A worker’s comp board will use all of these factors together when deciding how to qualify a worker.

For all of your commercial insurance needs, contact the insurance professionals at Agape Brokers Insurance Agency in Hemet, California. We will work with you to ensure that you have the right amount of protection for all of your employees.

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