Do I Need Workers Comp Insurance?

Workers’ comp is one of the primary business insurance policies required by the government for all employees.

However, it can be pretty confusing to deal with if you are an employer that primarily deals with independent contractors, also known as 1099 employees.

This article will deliver an in-depth answer to one of the most frequently asked questions regarding workers comp: how should independent contractors approach worker’s compensation insurance?

Who Needs Workers Compensation Insurance?

When a business owner employs someone, they are legally required to get workers comp insurance.

Aside from a legal requirement, it’s also a crucial financial safety net in case your employees get injured while on the job. Without this type of insurance, you’re left vulnerable to potential problems in the future.

But what if you’re an independent contractor who works for a company? You’ll be qualified as a self-employed professional who doesn’t have an employer. Are you still required to get workers’ compensation insurance?

The short answer is yes. The long answer will be discussed in the next section.

Do 1099 Employees or Self-Employed Professionals Need Workers Compensation Insurance?

The specific answer to this question depends on what state you’re in and the company you work for as an independent contractor.

However, for the vast majority of cases, both require you to have workers’ compensation insurance to some degree.

In most cases, the company is still required to pay for the compensation of any uninsured independent contractors. More than that, depending on the situation, companies can also be held liable for legal actions.

Due to this, employers technically carry more risk when they employ an individual contractor. To mitigate this risk, they will likely require you to have your workers’ comp insurance to protect themselves from liability.

Besides, a workers comp still benefits any self-employed professional because, should anything happen while on the job, it’s unlikely that personal insurance will cover it. Without a workers comp policy, you’ll have to pay for medical bills out of pocket, and you can’t be reimbursed lost wages, as well.

How Can 1099 Employees Get Workers Comp Insurance

The easiest way to get workers comp is to schedule a full consultation and assessment with a qualified insurance professional.

Before doing so, you may want to check your state requirements for individual contractors to have a better idea of where you stand.

Getting Workers Compensation Insurance with Magnum Insurance

Workers comp insurance is a must for employers and individual contractors alike.

Thus, it’s crucial that individuals on both sides must understand the law about this useful commercial insurance so that they can maximize its use when the time comes.

Interested in getting workers’ compensation insurance as a 1099 employee? Schedule a call with Magnum Insurance today!