Are Independent Contractors Covered By Workers Comp Insurance?

As an independent contractor, you will surely be able to get many benefits. From having your schedule to getting to earn the entirety of your money without percentage cuts, it is one of the best ways to do business primarily in the construction industry.
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However, you have to wonder if you will be eligible to apply for any insurance policy. While you may be suitable for some, there are certain limitations to the kind of insurance policies that you can get.

One of the policies that are not available to independent contractors is the workers' compensation insurance. Here are some other reasons why you wouldn't be eligible for this kind of insurance policy as an independent contractor.

Top Five Reasons for Workers’ Comp Insurance Ineligibility

1. Minimal Supervision and Control
   Independent contractors are generally not qualified for workers' comp insurance mainly because of their independent status. It essentially means that they have control over everything from the schedule, the way they provide the service, and how they finish it.
   
   Because their employer wouldn’t have any role in the performance of the job itself, the workers’ comp insurance policy does not apply to the contractual employee.
   
   
2. The Lack of Definite Contracts and Formal Hiring
   Employers do not hire independent contractors formally. They are hired per project and also receive payment after the job is complete. Because they don't have lasting contacts with the company, it follows that they do not need insurance as well.
   
   
3. Independent Contractors Provide Equipment Themselves
   Because they provide the equipment, the employers would not need to get insurance policies for the tools used. The contractors will not be paid for the additional equipment and any subsequent damage to them as well.
   
   
4. Independent Contractors Usually Do Freelance Work
   Companies usually hire independent contractors for single jobs. This means that they are not tied to a single company, which is why they are not qualified for workers' comp insurance. The workers' comp insurance policies usually provided by a single company.
   
   
5. Not Having a Permanent Employee Status
   Workers' Comp insurance policies are for permanent employees of the company. If you work for a company independently or on a contractual basis, you will not be eligible for the policy.

Conclusion
These are just some other reasons why workers' comp insurance doesn't cover an independent contractor. If you want to have this particular benefit, make sure that the company you work for puts you on permanent status.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.