Freelancers, independent contractors, or sole proprietors aren't automatically covered by workers compensation insurance. However, this doesn't mean you don't need the benefits associated with the coverage. If you are one of those workers who don't have automatic coverage, analyze your situation to determine whether you need to buy coverage for yourself. Here are four cases in which it pays to get workers insurance coverage:
You Are Engaged In a High-Risk Job
If your job is risky, you need to purchase workers' compensation insurance to cushion you from the losses you would face if injured. Sure, any worker can get injured, but higher risks justify the cost of the insurance. For example, it makes more sense for a chimney sweeper, a tree professional, or a delivery driver to buy the insurance compared to a work-at-home freelance writer.
You Are the Sole Breadwinner
You also need workers' compensation if you are the sole breadwinner for your loved ones, and they would suffer terribly if you god injured and couldn't work. Consider an example where your spouse is a stay-at-home parent, you have some kids in school, and you don't have a side business apart from your main line of work. In such a case, getting injured can easily spiral you into a financial quagmire, so workers' compensation is a necessity or you.
Your Contract Demands It
Some employers do not want to risk having to pay injured workers. Such an employer may ask you for proof of workers' compensation insurance before giving you work. Therefore, if you are dealing with such an employer, you have to purchase the coverage even if you think your job isn't that risky.
You Want To Improve Your Job Prospects
Some people may not ask you outright for proof of workers' compensation, but they consider it a bonus if you are covered. In some industries, an insured independent contractor competing for the sum job with an uninsured contractor may get the job ahead of his or her competitor even if workers' compensation isn't an express requirement. Such coverage shows your seriousness with your business, and the employer also gets reassured that he or she won't have to incur any extra expense if you are injured. Thus, workers' compensation coverage may boost our chances of landing contracts.
If you do get injured and are covered, ensure you get the maximum benefits you can get from your insurer. The best way to do this is to consult a workers' compensation lawyer to walk you through the process.Share