Workers Compensation Insurance

Do you need to buy workers compensation insurance? Talk to the professionals at Bancorp Insurance.

Workers Compensation Insurance

If you pay someone to work for you, and you are in charge or have the right to direct and control how the work is done, that worker is probably your employee. As with most no-fault insurance, worker’s compensation is only fair if it applies to all workers and employers.


There are a few exceptions. If you and an immediate family member are working in your business, say a husband and wife you do not have to buy workers compensation insurance. If you have hired an employee through an employment agency; in that case, the employment agency should carry the worker’s compensation insurance. But make sure you ask and that you get it in writing. The last exception is you have hired an independent contractor. Be careful with the independent contractor label, just because you say he or she is an independent contractor does not exempt you from buying workers compensation insurance. Make sure they truly are an independent contractor.


Just Because You Don’t Buy The Insurance Doesn’t Mean That Your Workers Don’t Have Access To its Benefits!


Let me make this clear, if you do not buy the insurance, for whatever reason and your worker gets hurt they have access to benefits under the Workers Compensation law. It’s just a matter who pays the bill – YOU or an insurance company. It’s true…..your hurt worker can and will go into Workers Comp court and get a judgment of benefits including fines, and penalties that can be sizable.


Either you or an insurance company will pay the benefits.

60 Second Test – Who Is An Independent Contractor

Okay back to who is an independent contractor. There are specific criteria that must be met before someone is truly and independent contractor.

  • Is the worker free from your direction and control?
  • Does the worker have the appropriate business licenses and registration?
  • Does the worker provide and maintain his own tools and equipment needed to do the job?
  • Does the worker have the freedom to hire and fire assistants?
  • Is payment made to the worker upon completion of specific portions of the projects or on an annual periodic retainer basis?
  • Is the worker currently registered with the Contractor’s Board?
  • Did the worker file a tax return with Schedule C under his or her business name last year?
  • Does the worker meet four of the following six requirements?
  • Does the worker work away from his or her personal residence that is set aside as the location the business?
  • Does the worker commercially advertise his or her business or have business cards?
  • Does the worker have a telephone listing that is separate from his or her personal residence telephone?
  • Does the worker perform work only pursuant to a written contract?
  • Does the worker perform services for two or more different employers during a one-year period?
  • Does the worker have financial bonding or liability insurance to cover the work performed?


If you need Workers Compensation Insurance fill out the easy quote form on this page and we’ll get you a quote within 24 hours of receiving your request or call us at 800-452-6826.

Free Insurance Quote

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