Workers’ Compensation for Independent Contractors: Are You Eligible?

Today, many people are quitting their full-time employment to become entrepreneurs. The gig economy is the new form of employment that has developed to allow this type of independent working. Some people commonly term themselves freelancers.  This trend became popular after the Global COVID-19 Pandemic. People started to think of doing something on their own. 

It eventually led to an increase in the freelancer community worldwide. Independently contract employees offer their services to the employer under an agreement. Such workers include dog walkers, ride-share drivers, and technology workers.

With the expansion of the gig economy, certain questions are coming up nowadays. People have various doubts regarding the subject of workers’ compensation. If you are injured at work in Richmond, workers’ compensation will assist with paying for hospital bills. They will also cover any lost wages. Besides, what would happen with independent contractors? Do they qualify for workers’ compensation?

Are Independent Contractors Covered?

Freelancers are exempted from the workers’ compensation insurance offered by the companies they work for. It means if you get injured while working as an independent contractor. Then, you will not be entitled to workers’ compensation. It means you will not get money for debts on medical treatments, lost salary, or any treatment. This contrasts with the other employees, who normally fall under their employer’s worker’s compensation insurance scheme. This is applicable for most organizations, however the situation might differ in case of some.

How to Tell What Type of Employee You Are

It can be confusing sometimes to know if you are an independent contractor. You need to check out certain things. 

• Behavioural Control:

If the company dictates how you should work, you might be an employee. If you choose how the job will be done, that makes you an independent contractor.

• Financial Control:

Independent contractors usually:

– Be responsible for business expenses related to their operations.

– Purchase their own tools and equipment.

– Provide services to other people.

– They are paid a fixed amount for their work, are not employed per hour, and do not receive state taxes.

• Type of Relationship:

Independent contractors often:

– Perform all work under a written contract.

– It does not provide such benefits as paid vacations or health insurance for the employees.

– Freelance has a short-term contract to work on short-term projects with the company.

– Are not permanent employees of the business but are contracted due to their proficiency in particular tasks.

What An Independent Contractor Should Do?

Independent contractors are most of the time not covered by workers’ compensation. The companies have these facilities only for full-time employees. You might need to find other ways to protect yourself:

• Consider Getting Insurance:

Research how you can obtain individual medical insurance or any other insurance that deals with injuries from work.

• Save for Emergencies:

Save money for emergencies such as hospital bills.

• Check Local Laws:

It is also important to note that some places have their own set of rules for independent contractors.

Conclusion

Independent contractors are important today. But they don’t get workers’ compensation from their companies. Knowing if you are an independent contractor or an employee is key. This helps you see what benefits you have. If you work for yourself, get your insurance and save some money for emergencies. This way, you will be ready if you get hurt. To understand these better, research more online. You can also get suggestions from others who work in similar roles. Various policies are coming up nowadays. You can find the right fit for you and apply for them.