Independent contractors, typically classified as 1099 workers, are generally not covered by an employer’s workers’ compensation insurance. This is because workers’ compensation is designed to protect employees, and independent contractors are not considered employees under most legal definitions. Instead, they are considered self-employed business owners responsible for their own insurance coverage, including coverage for work-related injuries or illnesses. For example, a freelance writer hired by a publishing company on a project basis would likely be a 1099 worker and responsible for obtaining their own insurance coverage.
The distinction between employee and independent contractor status is crucial for determining responsibility for workers’ compensation coverage. Proper classification ensures that individuals receive appropriate legal protections and benefits. Historically, the development of workers’ compensation systems aimed to provide a safety net for employees injured on the job, shifting the burden of liability away from the employee and towards the employer. Requiring businesses to carry this insurance helps ensure that injured workers receive necessary medical care and wage replacement without having to navigate complex legal proceedings. This system, however, traditionally excluded independent contractors due to their status as separate business entities.
