In today`s gig economy, more and more people are opting to work as independent contractors. While being your own boss might seem liberating, it also comes with certain risks. One of these risks is the lack of workers` compensation insurance.
In most states, businesses are required to provide workers` compensation insurance to their employees. This insurance covers medical expenses, lost wages, and other costs related to injuries or illnesses that happen on the job. However, independent contractors are not employees, so they are not covered by this insurance.
That`s why it`s important for independent contractors to protect themselves with an independent contractor agreement. This is a legal document that outlines the terms of the working relationship between the contractor and the business. It can also include provisions for workers` compensation insurance.
When drafting an independent contractor agreement, it`s important to clearly define the scope of the work and the relationship between the contractor and the business. This can include the specific tasks that will be performed, the timeline for completion, and the payment structure.
It`s also important to include a section on insurance. This should specify that the contractor is responsible for obtaining and maintaining their own workers` compensation insurance. It should also state that the business will not be held liable for any injuries or illnesses that happen while the contractor is on the job.
Additionally, the agreement should include a waiver of liability. This is a legal document that releases the business from any liability for injuries or illnesses that happen to the contractor while they are working. This is a standard practice in the industry and is designed to protect both parties.
In conclusion, independent contractors should take the necessary steps to protect themselves when working with businesses. This includes obtaining their own workers` compensation insurance and having a well-drafted independent contractor agreement that clearly outlines the terms of the working relationship. By doing this, contractors can ensure that they are protected in case of an unfortunate accident.