If you have any number of employees, it is important to make sure that you have the right workers compensation insurance policy to protect them from any injury that happens on the job. If you also have independent contractors working for you, is it easy to get confused when it comes time to properly classify all of your employees. Even though independent contractors technically work for your company, they are not considered employees.

Independent contractors cannot be covered by a workers compensation policy since they are not considered employees. Many employers thought that they found loopholes in their workers compensation policies by classifying all of their employees and independent contractors to save money. However, this can lead to heavy tax fines and other penalties. It can also lead to gaps in your insurance coverage, leaving all of your employees vulnerable.

Along with the thousands of dollars of fines that you can receive from the IRS from wrongly classifying your employees, you can also see serous financial loss if one of your wrongly classified employees is injured on the job, since they will not be covered under your workers compensation policy. While a liability insurance policy will provide protection from a lawsuit from an independent contractor who is injured, it will not provide protection from a lawsuit from a wrongly classified employee. A workers compensation policy will provide protection from a lawsuit for an injured employee, as long as they are classified as an employee.

For all of your workers comp protection needs and to ensure that you and your employees are covered in any unfortunate situation, contact the insurance experts at Agape Brokers Insurance Agency in Hemet, California. We will work with you to make sure that you have the right amount of coverage, all at the right price.

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