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Do You Need Workers’ Compensation For Contractors?


There are two main types of workers: employees and contractors. Employees work directly for the company. The business provides them with equipment and they work a set schedule. Employees have taxes deducted from their paychecks.

Contractors, on the other hand, work on a freelance or contract basis. They provide their own equipment and work their own hours. They also must pay their own taxes. Contractors also do not receive any benefits, such as health insurance or paid time off.

Because they are not employed by the company, independent contractors are typically not eligible for coverage by workers’ compensation insurance. However, independent contractors may purchase their own workers’ compensation insurance policy. In fact, it is highly recommended that they do so. Some companies may even require independent contractors to provide proof of workers’ compensation coverage to prevent liability issues if a workplace accident occurs.

While contractors are not employees, it may be good to have some protections for them. That’s because independent contractors may get sick or injured, causing them to be unable to perform the duties outlined in their contract.

While many contractors, such as those who work with computers all day, may be able to handle a minor illness or injury without missing too much work, those who perform physical labor may not. For example, hiring someone to perform construction work carries a great deal of risk. A contractor who suffers an accident may have to miss several weeks of work. If there is a workers’ compensation policy in place, it would provide a means of support while the contractor recovered from the accident. This type of benefit would likely not be available through a health insurance plan.

Workers’ compensation is a form of business insurance that pays for the cost of medical care and a part of lost income of employees who get injured or sick due to a job-related accident. It comes in two parts:

  1. Part 1: In this part of a workers’ compensation policy, the insurer agrees to pay any compensation amount required by the state. Coverage is not capped, so the insurance company will pay any costs caused by a work-related accident.
  2. Part 2: This is the employer liability portion. It protects a business against lawsuits resulting from a workplace illness or injury. This part comes with a monetary limit.

Workers’ compensation benefits include the following:

  • Lost wages
  • Medical and treatment costs, including hospital and doctor visits, surgeries, and prescription medication
  • Ongoing care expenses, such as occupational, physical, and speech therapy.
  • Full or partial disability benefits
  • Funeral and burial expenses

Contact Us for More Information About Workers’ Compensation Benefits

Workers’ compensation may or may not be a requirement, depending on whether or not you have employees.

Make sure you understand the laws. If you have been injured at work, a White Plains workers’ compensation lawyer from The Law Office of Michael Lawrence Varon can file a claim and guide you through the process. To schedule a consultation, call (914) 228-1770 or fill out the online form.



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