Impartial contractors, usually categorized as 1099 employees, are usually not lined by an employer’s employees’ compensation insurance coverage. It’s because employees’ compensation is designed to guard workers, and impartial contractors are usually not thought-about workers beneath most authorized definitions. As an alternative, they’re thought-about self-employed enterprise house owners accountable for their very own insurance coverage protection, together with protection for work-related accidents or diseases. For instance, a contract author employed by a publishing firm on a challenge foundation would possible be a 1099 employee and accountable for acquiring their very own insurance coverage protection.
The excellence between worker and impartial contractor standing is essential for figuring out duty for employees’ compensation protection. Correct classification ensures that people obtain acceptable authorized protections and advantages. Traditionally, the event of employees’ compensation techniques aimed to supply a security web for workers injured on the job, shifting the burden of legal responsibility away from the worker and in the direction of the employer. Requiring companies to hold this insurance coverage helps make sure that injured employees obtain needed medical care and wage substitute with out having to navigate advanced authorized proceedings. This method, nonetheless, historically excluded impartial contractors as a result of their standing as separate enterprise entities.
