Are independent contractors covered by workers’ comp?

Independent contractors are not eligible for workers' compensation coverage and employers are not required by state law to purchase coverage for independent contractors. But some employers misclassify employees as independent contractors to avoid paying payroll taxes and workers' comp premiums for them.

Insurance carriers aren’t pleased when a 1099 worker gets hurt on a company’s premises and that worker isn’t covered by their own workers’ comp or the hiring company’s WC. The result may be a costly lawsuit. So, if your clients don’t put a “regular” 1099 worker on payroll and workers’ comp, it may end up costing them in the long run.