As an independent contractor, you have the freedom and flexibility to choose your own schedule and the jobs you take on. Being your own boss has its perks, but it also means you have to take on more responsibility.
Let’s say, for example, you get injured or sick on the job and can’t work for an extended period while you recover. Who pays for your medical expenses? How will you continue earning a salary if you can’t work?
This is where workers’ compensation insurance would usually come into play. Workers' compensation insurance pays for medical expenses and lost wages when a worker suffers an on-the-job injury. However, businesses typically do not provide this coverage for independent contractors. That means you'll have to cover the cost if you get hurt.
We'll walk you through why independent contractors need workers' comp, common job injuries and how to prevent them, and what to do if you get hurt.
Why independent contractors need workers' compensation
Independent contractors may choose to forgo workers’ comp coverage, but this can be risky. Here’s why:
No automatic coverage
Most employers or general contractors don’t provide workers’ comp for independent contractors. If you get hurt, you’ll have to cover medical bills and lost wages—which can be very expensive.
Legal protection
You can prevent legal headaches with your own workers' comp coverage if an employer disputes your claim. Taking an employer to court over your workers' comp claim can rack up legal fees.
Industry requirements
Many states and industries, such as construction, require independent contractors to carry workers’ comp. Not having your own coverage could mean missing out on a job. On the other hand, having a workers' comp policy could help you stand out when bidding for a project. Regardless, in order to avoid surprises, it's a good idea to understand who is responsible for workers' comp coverage before accepting a job.
Workers’ comp acts as a safety net. It ensures you have the financial support you need if you get injured on the job.
Learn about our
Business Insurance
State-specific regulations for independent contractors
Workers’ compensation laws vary by state, and some require independent contractors in certain high-risk industries, like construction, to carry their own coverage.
Independent contractors should always check their own state’s workers’ compensation requirements to make sure they are operating within the law.
Find your state’s official workers’ compensation website to learn more.
Most common workers' compensation injuries for contractors
According to the U.S. Bureau of Labor Statistics and the National Safety Council, these are the most common workplace injuries:
Overexertion and Bodily Reaction (Sprains and Strains): 23%
Occurs through lifting, pushing, pulling, carrying or repetitive motion.
Slips, Trips and Falls: 20%
Includes falls on the same level and falls to a lower level.
Contact with Objects & Equipment: 20%
Includes being struck by, caught in or compressed by machinery or objects.
Transportation Injuries: 5%
Includes vehicle-related accidents, like collisions or being struck by a vehicle.
Violence and other injuries by persons or animals
Includes intentional injury by another person, animal or insect and unintentional injury by person.
Occupational Disease
Occupational disease claims are less frequent but can be more severe. These can include asthma, infections, lung disease and cancer.
It’s important to note that incident rates vary by industry. Construction, manufacturing, healthcare and warehousing industries see higher rates of specific injury types.
For example, those in the construction industry experience injuries related to slips, trips, falls and falls from heights most often. The most common job-related injuries for healthcare workers include strains, sprains, slips, trips, sharp object injuries and job-related illness through exposure to infectious disease.
How to prevent common injuries
Accidents happen, and while you can’t prevent them all, you can reduce the risk of injury by following these steps:
- Wear the proper equipment
- Maintain a clean workspace
- Take breaks and use proper form when lifting or performing repetitive motions
- Receive regular training on machinery and perform routine maintenance and inspections
You can find more safety protocols and best practices on the Occupational Safety and Health Administration’s Construction web page.
What to expect during a workers' compensation claim
If you get injured on the job and you have a workers’ comp policy, follow these steps to ensure you get the coverage you need:
- Seek medical treatment.
- Notify the hiring party (your employer or client) in writing as soon as possible. It’s important to include details around the nature of the injury, how it happened and how it may affect your ability to continue working. Getting this information over to the hiring party quickly is important as most states have statutes of limitations on reporting workplace injuries.
- Report your injury to your insurance provider.
- File a claim and submit the required forms and documentation. It’s important to be as detailed and accurate as you can be when documenting the incident.
- As your insurance provider investigates the claim, make sure to provide any additional information they may need.
- Follow-through on your recovery plan and create a back-to-work plan with your employer.
- Get medical clearance before returning to work.
As an independent contractor, you take on more financial risk than traditional employees when it comes to workplace injuries. Being injured or sick is stressful enough without adding on the burden of unexpected medical expenses and lost wages.
Workers’ compensation can help lighten the financial load and bring some peace of mind. Reach out to one of our independent insurance agents to learn more about getting a workers’ comp policy.
References
National Institute for Occupational Safety and Health (NIOSH)
Occupational Safety and Health Administration (OSHA)
U.S. Bureau of Labor Statistics
Troutman Pepper Locke
National Safety Council
Coverages described herein may not be available in all states. Please contact a local independent Integrity agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Integrity Insurance policies are underwritten by Integrity Insurance Company, an affiliate of Grange Insurance Company, and Integrity’s subsidiaries. Integrity companies not licensed in Pennsylvania. Not all Integrity companies are licensed in all states.