Do Contractors Need Workers’ Comp for Part-Time or 1099 Workers?

Hey guys, Mike here.

Running a contracting business, I’ve had plenty of times where I brought in a couple of guys for just a few days of roofing, or called up a buddy who’s a licensed electrician to help me out on a project. They’re not full-time employees — sometimes they’re part-time, sometimes they’re 1099 subcontractors.

So the big question I asked my insurance broker was: do I still need workers’ compensation coverage for them?

Here’s what I learned:

• Most states require workers’ comp no matter what.
  Even if you only hire one person, or bring someone in temporarily, states like New York and New Jersey will still expect you to have workers’ comp in place. Connecticut and Pennsylvania have similar rules.

• Subcontractors aren’t always covered under their own policies.
  A lot of us think, “Hey, they’re 1099, they should have their own insurance.” But unless you actually verify and get proof, the responsibility can fall back on you. If a subcontractor gets hurt on your job site and doesn’t have coverage, guess who’s on the hook? That’s right — you.

• Penalties for not carrying it are no joke.
  I’ve seen fines in the thousands, plus the state can shut down your job site until you’re compliant. That’s not a headache I want.

• Workers’ comp protects me too.
  If someone does get injured, I don’t want to be paying medical bills and lost wages out of pocket. Having that policy in place means I can focus on finishing the job and not stressing about a lawsuit.

So at the end of the day, I realized that yes — even if I’m only hiring part-time or 1099 workers, I still need workers’ comp. It’s not just about checking the box with the state, it’s about protecting my business and keeping jobs moving smoothly.

If you’re running a contracting business like mine and aren’t sure what you need, I’d definitely recommend giving a broker a call. That one conversation can save you a lot of money and trouble down the road.

If you want to talk to someone about getting covered, give The Sarrica Insurance Group a call at 516-277-0812 or fill out our quick online form here: Get a Quote.

— Mike