When someone is injured on the job, it is typically the employer’s responsibility to cover all expenses and time off required through workers’ compensation. In fact, the state of Indiana requires employers to purchase workers’ compensation insurance for that very reason. However, many companies avoid this process by hiring contracted workers, who do not work as a direct W-2 employee for the company. In these situations, the contractor is responsible for their own workers’ compensation.
The issue is, many contractors are still working high-risk jobs, and they cannot afford to be out of work. What happens if they are injured on these jobs and are required to take time off of work? If necessary, these sole proprietors and contractors are able to purchase their own workers’ compensation in order to protect themselves from these unfortunate incidents.
In Evansville, about four percent of workers are self-employed in some way. This makes workers’ compensation insurance a relevant conversation to have. Is it worth it for you to purchase this in your unique business?
When a Company Requires It
Some companies refuse to hire an independent contractor if they don’t carry workers’ compensation. This is to avoid any legal fees if the contractor attempts to sue the company for any injuries acquired while on the job. Based on the nature and risk of the job, the employer has the right to decide whether or not a contractor is worth the risk if they do not have their own workers’ compensation to cover any potential injury. Therefore, you as a contractor should consider whether or not working for a certain company may be worth the cost of purchasing workers’ compensation coverage.
When the Job Is High Risk
A roofer may be more willing to purchase workers’ compensation than a freelance writer would be due to the risk analysis. A writer may not see enough risk in the job and therefore would not see the insurance investment as necessary. On the other hand, someone who is self-employed in a career that is seen as more dangerous, such as roofing, may find workers’ compensation to be worth the investment, as chances of injury are higher.
When It Is Your Sole Income
There are two common forms of a contract worker: one who does it on the side of a full-time job, and one who generates enough business to make it a full-time job on its own. If your freelancing projects are a side job, then you are likely less dependent on the income, and therefore could afford to be out of work for a few months if necessary. In this case, workers’ compensation insurance may not be worth the cost. However, if your contracting business is your sole income, you could take a major hit if you were unable to perform duties and generate income. Therefore, in this case, it may be more necessary to purchase workers’ compensation.
Help from an Evansville Workers’ Compensation Attorney
If you’re covered by workers’ compensation through your employer but are struggling to get the compensation you deserve, it may be time to seek legal assistance. Call Hensley Legal Group today and allow one of our experienced workers’ compensation attorneys to assist you with your case through a free consultation, or contact us online.