Employers are required by the Federal and State law to provide workers’ compensation to staff in case of any injury in the workplace. One type of workers’ compensation is the workers’ compensation for contractors.
How workers’ compensation works
The main objective of the workers’ compensation is to cover employees from job injuries. In case the employee suffers work-related illness or injury, you as the employer agree to cover with an insurance policy that provides benefits required by the law. It is a statutory requirement as an employer to provide workmans’ comp to your employees. High-risk tasks such as constructions will require the employer to have workers’ comp for contractors, due to high risk of illness or injury.
There are instance where you may or may not require workers’ comp for contractors; to cover your employees, to cover yourself or to be insured by your employer. This coverage refers to benefit received as a result of injuries or lost income during the period that your employee are not able to work as a result of work-related injuries.
Let examine why and when work comp for contractors may be necessary.
Is it necessary for contractors to have workers’ comp insurance for themselves
It is not a requirement for contractors to have workmans’ comp insurance. This also includes partnerships and sole proprietorship, unless you have hired employees in your business. Though it is not a requirement as an independent contractor to insure yourself, it is advisable to do so since you may get injured in the workplace and end up into serious medical bills or permanent disability. Obtaining a workers’compensation insurance for contractors can help in avoiding such financial risks.
Is it necessary for contractors to have workers’ comp for their employees?
As a general rule any employer should have workmans’ comp insurance for his or her employees. you should follow all the requirements in your state when applying for workers’ comp insurance. Assuming an external auditor get an injury while on official duty, he will file a claim and receive medical coverage and other financial benefits depending on the policy.
Do contractors require workers’ compensation insurance from their employers?
It is not your responsibility as a hired contractor to know whether or not your employers have workers’ comp. In most states, the rights of an employee to workers’ compensation are stronger compared to those of the employer. You have the right to claim compensation from employers instead of going to the workers compensation court.
The kind of insurance needed by an independent contractor
The best insurance policy for independent contractors is the general liability insurance. The general insurance policy can save you from damages and lawsuit as a result of workplace injuries.
Call to action
Choosing the right workers compensation for independent contractors is the best strategy you can apply to protect your contracting firm’s finance in case of uncertainty.
Get in touch with us today for more information about workers compensation insurance in California.