Wole.K
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As a general rule, yes-workers compensation insurance is needed when hiring new workers. Let's say that you own a fitness center, and now you have three teachers on board. You have workers' compensation coverage for them, and you have followed all of the regulations in your state to the letter. However, you suddenly get a new contractor to work for you, who happens to be one of the best workers in town.
What should you do now? Well, if you didn't already know, there are two types of workers' comp insurance for contractors; a direct pay or a dependent pay. If you were insuring your independent contractor strictly for direct payment, you would need to notify your workers and give them time off without pay for up to 30 days. However, if you're insuring them under a dependent pay policy, they only get time off with pay when the contractor has reached a certain amount of hours worked. Unfortunately, it's almost impossible for independent contractors to stay with their own business if they don't have enough hours to qualify for this type of plan.
The best way for independent contractors to stay and build a strong client base is to make sure that they have workers' comp insurance, just as any other independent contractor would. However, not every independent contractor has offered this type of coverage. Some contractors simply choose not to, which is sad because this is such an important aspect of working in today's day and age. If you truly want to be protected and covered by workers' compensation insurance for contractors, then you need to contact a qualified insurance agent today.
Once you receive a quote for workers' compensation insurance for contractors, you'll have plenty of time to evaluate it. Ask questions about how many employees are covered under the policy, and what type of plan is offered. It's also advisable to ask if there is a provision in the contract about additional workers or clients. You may find that you can save money by selecting a more limited liability plan, which allows you to only handle limited types of projects.
Of course, one of the key things you should consider is the type of workers' compensation insurance you're going to purchase. There are essentially two different types: contractors and general contractors. Contractual workers' compensation insurance for contractors costs less because there is no set limit on how many employees can be covered. This works out best for small contractors who have only a few employees, but the savings may be negotiable for larger contractors with several employees. General contractors typically cover more employees, so the overall cost will probably be more expensive.
If your business has one employee, then you don't need workers' compensation insurance for contractors. However, if you employ several people, you may want to purchase this coverage to protect each one. The first thing you'll need to determine is how much coverage you need for each individual employee. The second thing you'll need to determine is how much coverage you need for your entire business, so make sure to include all of your sub-contractors, as well as any independent contractors you hire.
The best way for independent contractors to stay and build a strong client base is to make sure that they have workers' comp insurance, just as any other independent contractor would. However, not every independent contractor has offered this type of coverage. Some contractors simply choose not to, which is sad because this is such an important aspect of working in today's day and age. If you truly want to be protected and covered by workers' compensation insurance for contractors, then you need to contact a qualified insurance agent today.
Once you receive a quote for workers' compensation insurance for contractors, you'll have plenty of time to evaluate it. Ask questions about how many employees are covered under the policy, and what type of plan is offered. It's also advisable to ask if there is a provision in the contract about additional workers or clients. You may find that you can save money by selecting a more limited liability plan, which allows you to only handle limited types of projects.
Of course, one of the key things you should consider is the type of workers' compensation insurance you're going to purchase. There are essentially two different types: contractors and general contractors. Contractual workers' compensation insurance for contractors costs less because there is no set limit on how many employees can be covered. This works out best for small contractors who have only a few employees, but the savings may be negotiable for larger contractors with several employees. General contractors typically cover more employees, so the overall cost will probably be more expensive.
If your business has one employee, then you don't need workers' compensation insurance for contractors. However, if you employ several people, you may want to purchase this coverage to protect each one. The first thing you'll need to determine is how much coverage you need for each individual employee. The second thing you'll need to determine is how much coverage you need for your entire business, so make sure to include all of your sub-contractors, as well as any independent contractors you hire.
