Worker’s Compensation Coverage

Worker’s Compensation Coverage

An Intelligent Approach to Coverage and Compliance

Like most employers, you’re required by federal law to have workers’ compensation insurance for your employees. At the same time, states have their own rules, and they can create additional compliance headaches for your organization.
By understanding the applicable regulations and identifying coverage options that reduce the risks to your organization, you can meet your compliance requirements, lower your costs and still protect your employees the way they deserve.

photo: represents Worker's Compension


As an employer, that’s a question you need to ask about the people working for you. Should they be regarded as employees or independent contractors? It’s an important distinction, given that if you classify them the wrong way you could be on the hook for retroactive workers’ compensation coverage (not to mention federal and state taxes) if those individuals are laid off.

So how do you determine if a worker is an employee or an independent contractor? The first step is to explore the business relationship that exists between your organization and the worker. The general rule is the more control your organization has over the worker, the greater chance he or she will be considered to be an employee.


Are the business aspects of the worker’s job controlled by you as the payer? This includes how the worker is paid, whether expenses are reimbursed, who provides tools and supplies, and so on.

Does your company or organization control or have the right to control what the worker does and how the individual does his or her job?

Do you have a written contract, and do you offer employee-type benefits to the individual? Will your relationship continue? Is the individual’s work deemed to be essential to your business?