Workers Compensation for Independent Contractors and Subcontractors

Generally, employers and business homeowners who search out the services of contractors and subcontractors square measure guiltless from any liability for the medical and accident-related prices of these freelance contractors. However, this can be from time to time, not the case as there square measure laws that classify associate degree freelance contractors as your worker. Therefore, as a business person or leader, it's not safe to assume that your contractors will wrongfully and absolutely shield your staff.

Policy Purpose

Close up on a file tab with the word contractors, specialize in the most word and blur result. conception image for illustration of contractors or subcontractors company information. In any operating relationship, there ought to be a transparent employer/worker relationship. However, additional typically than not, parties contract and subcontract with one another for the availability of higher services in several ways in which.

Recent laws have created it tough to see whether or not employees providing numerous services ar your workers or freelance contractors. The act (The Employee Compensation Act) delineates the various responsibilities and tips of all the parties concerned. To avoid confusion once mistreatment freelance contractors, and before feeling snug ignoring your contractors once it involves workers’ compensation audit insurance for contractors, contact the U.S. to find out a lot of and avoid the unpleasant surprise throughout your finish year worker’ compensation audit.

Identifying an Independent Contractor

Is your contractor an Associate in Nursing freelance contractor or your employee? Associate in Nursing leader or business owner is answerable for the subcontractors’ workers' compensation audit for contractors unless they;

• Are working as a corporation,
• Have valid WCB account,

Are working as;

• Employers in their areas of specialization,
• Are operating for an additional company/employer,
• Are operational as partners (In a partnership with their own personal coverage)
• Are proprietors (and with freelance personal coverage)

When contractors are viewed as your workers

When contractors or subcontractors fail to buy workers' compensation audit insurance for contractors; aren't operating as freelance business entities, the American state laws could classify them as your staff. Here area unit some examples wherever a contractor is very doubtless to be thought of as your worker:

• When the contractor supplies solely labor. an honest example may be a driver.
• When the contractor supplies each labor and major instrumentation, however, he/she isn't registered with the workers’ compensation board,
• When the contractor’s role is to produce labor and some minor materials like drywall tapes, nails, etc.

When contractors and subcontractors are not considered your workers.

The only method contractors wouldn't be thought-about as your staff is that if they operate as freelance entities. Here area unit 3 examples wherever contractors ANd subcontractors would be operating as a freelance business:

• If your contractor is functioning with some additional purchasers and has multiple contracts,
• If your contractor is providing a good array of major instrumentation and is registered with the employee compensation board,
• If your contractor is actively advertising his/her services and is providing services to the general public (multiple purchasers.)
• Request a duplicate of the freelance contractor registration kind
• Check to substantiate that the contractor or contractor is registered
• Request for the contractor’s certification of insurance for general liability

What to do if in doubt or if the contractor/subcontractor doesn’t have coverage.

Lastly, don't hesitate to go to our web site contact page and evoke facilitate. This way, you may not solely have associate in-depth understanding of your workers’ comp for contractors, however, you may conjointly get premium services that will prevent within the event of associated injury or throughout an audit.