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Independent Contractors and Workers’ Compensation: An Overview

Workers’ comp insurance is a policy that provides coverage to employees (and independent contractors). The policy will pay for any medical expenses and lost wages resulting from a work-related injury. Some independent contractors prefer to carry their own health insurance coverage for work-related accidents, but this type of coverage will not pay for lost wages. However, the final decision is up to the independent contractor and what they believe will best suit their needs.

Many Businesses Require Independent Contractors to Carry Workers’ Comp Insurance

Even though an independent contractor may choose not to purchase a workers’ comp insurance policy, the companies that hire them to perform jobs on their property may require them to have a policy in place. This ensures that the independent contractor is already covered and will not utilize the company’s workers’ comp policy. This does not always mean that no claims will be filed against the company’s workers’ comp policy. There may be times when it is determined that their policy accepts the claim, especially if they were at fault for the contractor’s injury.

It’s in Your Best Interest to Have a Good Workers’ Comp Policy

Many independent contractors choose to purchase a workers’ comp policy for themselves to get all of the benefits they will need if a work-related accident should ever occur. A health insurance policy will only cover their medical expenses. A good workers’ comp policy will provide lost wages benefits in addition to the medical costs. It will offer more of a complete range of coverage than a simple health insurance policy. Workers’ comp also guarantees that your injuries will be treated by the right type of doctor and not just by a general practitioner.

How Can an Independent Contractor Get Workers’ Comp Insurance?

An independent contractor can apply for a workers’ comp policy through an independent insurance agent. All they need to do is find out what the mandated requirements are for their state and then calculate the amount of coverage they will need by gathering enough information to obtain an estimate. Once that has been completed, you can apply for a workers’ comp policy with your own independent insurance agent. You also have the option to find a different insurance agency that offers only the types of insurance you need for your business.

As an independent contractor, maintaining your company’s insurance needs is your responsibility. This includes having sufficient workers’ compensation coverage. Working with our agents at CF&P Insurance Brokers is the best way to get the coverage you need for both you and your business. Call us today to schedule an appointment and find out what your next steps should be when it comes to applying for workers’ comp insurance.

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