Workers Comp for Independent Contractors

Why Independent Contractors Typically Aren’t Covered

As the benefits from workers comp are saved for employees, the contractor themself cannot be identified as an employee. They are seen as self-employed. As such, workers comp is meant for those employees who are injured or get sick on the job and since these owners are self-employed, they are not technically hired or on any payroll that can justify the benefits of workers comp.

Are There Alternatives?

Even though independent contractors are not eligible for workers compensation, there are still a few options that can be considered in order to get similar if not the same benefits in a roundabout way.

• Independent contractors can choose to buy workers compensation insurance themselves.
• Some companies may require independent contractors to carry workers comp coverage.
• If not required, the decision remains entirely up to the contractor.

Misclassification Issues

There are cases where employees are misclassified as independent contractors. If this happens, and you are actually functioning as an employee, you may have grounds to:

• File a claim against your employer.
• Challenge your classification.
• Become eligible for workers compensation benefits retroactively.

Third-Party Injury Claims

Sometimes, if an injury or illness is caused by a hiring party or third party, the independent contractor can file a personal injury claim against that party due to negligence and receive compensation through that legal route.

Final Thoughts

Workers comp is a very convenient protection for those working as employees. Even though it is more complicated for independent contractors, it is not out of reach. It just requires extra steps and consideration.

If you are an independent contractor, evaluate your line of work carefully and make an educated decision on whether obtaining workers compensation coverage for yourself is a necessary and worthwhile investment.