How Contractor Workerman’s Comp Protects Business Owners

​Independent Contractors are a unique culture because they are effectively straddling the line between self-employed and small business owner. Contractors contribute significantly to the alacrity of the economy. However, contractors tend to have quite some risk involved when they go about their business. 

​Contractors Have Workers 
For most successful contractors there is a need to hire staff to do the work. After many independent contractors are effectively small operations that need a crew to get work done. These are employees with the same rights and duties as any workers. They are part of workers compensation because they are employees. 

Should something happen while in the line of work they can depend on worker’s comp to help tide them through the recovery period and to help them pay their bills. 

Independent Contractors are Not Workers
Unfortunately, not all independent contractors are small businessmen. Some are people who value their freedom and find the idea of an 8 to 5 job overly restrictive. 

Others have a skill set that many companies want but they do not need enough of it to justify a full-time employee. For example, all companies, at some point, will need legal counsel. But unless the company is very large it is unlikely they will benefit from a full-time lawyer. Instead, a lawyer will probably have several clients all of whom are billed for only a few hours each. 

There are even some unethical employers who misclassify employees as independent contractors to avoid paying for their worker’s comp. 

Contractor Worker’s Comp is a Hybrid 
Contractor worker’s comp is a hybrid that will provide some benefits of worker’s comp to independent contractors. 

This protects the business of people who deal with independent contractors for two reasons.  

First, independent contractors who have insurance provided by the businesses they work with will feel secure knowing that if something goes wrong there will be liability insurance that will help them. People tend to do better when they are kept secure and not worrying about intangibles. 

Second, should something go wrong the insurance will step in to compensate the business owner that the contractor is working with? They are assured that they will get their money’s worth even independent of the quality of the contractor

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