are subcontractors covered under work comp?
Independent contractors are not eligible for workers' compensation coverage; employers are not required by state law to purchase coverage for independent contractors. However, some employers misclassify employees as independent contractors to avoid paying payroll taxes and workers' comp premiums for them. If the subcontractor is not covered, then the employee can file a claim against the general contractor’s insurance company. If the general contractor’s carrier denies the claim, then the employee can file a civil action against the general contractor, or have an attorney petition the state workers' comp authority. Under the Workers' Compensation Law, most individuals providing services to a for-profit business will be deemed an employee of that business and therefore must be covered by the employer for workers' compensation insurance. If the employee of a subcontractor suffers an on-the-job injury, the subcontractor’s workers' comp carrier should provide the medical and indemnity benefits. If the subcontractor is not covered, then the employee can file a claim against the general contractor’s insurance company. However, a general contractor's workers' comp carrier may require such coverage, for subcontractors as well as independent contractors who are self-employed and thus not required by the state to have their own insurance. If a business meets any of the criteria listed below, and the individual hired does not meet the criteria listed under independent contractors, or the services rendered are not specifically exempted as employment under the WCL, then that business must obtain a workers' compensation insurance policy. Classifying Independent Contractors and Employees. A business cannot require employees working for that business to obtain their own workers' compensation insurance policy or contribute towards a workers' compensation insurance policy (Employees). As a result, insurance carriers often assess general contractors premiums for coverage of all subcontractors on the job site, unless the subcontractors furnish proof that they have their own workers' compensation insurance policy. For example, if Business A contracts with Business B to perform services and Business B is an independent business with its own employees, Business A can require Business B to have its own workers' compensation insurance policy and obtain a certificate of insurance for this policy. Workers' compensation is a system of insurance that covers employees as well as employers. If a covered employee suffers a work injury, the insurance pays for medical costs and lost time from work; the insurance also protects the employer from liability and expenses related to the accident.
Yes