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#2
03-29-2002, 07:22 AM
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In addition to WC insurance, it is wise to also purchase "Employer's Liability" (EL) coverage that fills in the gaps. Since WC coverage is determined by each state, there may not be one universally correct answer to your question. In general terms, WC and EL policies combined should provide sufficient coverages for the types of perils you are suggesting.
RW 
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#3
03-29-2002, 08:52 AM
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Generally speaking, independent contractors are NOT covered under workers compensation, and coverage is not needed for them.
However, there have been hundreds of court cases on the definition of an independent contractor vs an employee. Ron's point about having EL coverage is correct. I believe the NCCI policy covers both.
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#4
03-29-2002, 10:00 AM
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Thank you very much, Ron and Schroeder, for your help.
A couple of follow up questions. 1. If technically independent contractors are not covered by Workers' Compensation (WC) then they shouldn't be counted when calculating the premium, correct? (After all, the employer is not paying Soc.Secur. tax for them either unlike for emploees.) 2. The way to cover them as well as other non-employees is to purchase Employer's Liability (EL) insurance, correct? 3. What is a NCCI? I guess I stands for insurance...but the rest of the letters... 4. What is the best place to find a reference to Insurance Code describing this? I realize that some states make it elective (NJ, SC, TX) but I am in MA and can't find any reference. Thank you again.
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#5
03-29-2002, 12:19 PM
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1. Correct, since they are not employees, they are not used in calculating premium.
2. The way to cover the contractors is to purchase General Lability insurance, I think. I am not familiar enough with the Employers Liability coverage to say this would cover contractors, but I don't think it does. 3. NCCI is the National Council for Compensation Insurance. They are based in Florida. The issue advisory rates and policy forms in around 30 states. Most insurance companies that write Workers Compensation insurance use them. 4. Can't help you on this one, sorry <font size=-1>[ This Message was edited by: Schroeder on 2002-03-29 12:20 ]</font>
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#6
03-29-2002, 01:18 PM
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When I lived in NY, and wanted to know if I was required to buy WC on my full-time babysitter, and, if not required, was I allowed to buy it, I called the state insurance department. After some phone-tag, I spoke to someone who knew the answer for NY state. (You are not required to buy WC for babysitters, and therefore cannot do so, however, you can petition the state to require you to carry such coverage, in which case you can do so. These things can get convoluted around the fringes.)
I suggest you call the Mass Insurance department, or the Mass state attorney general's office for a definitive answer based on the actual conditions of the situation.
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#8
03-29-2002, 04:05 PM
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The way to provide insurance for truly independent contractors is for them to buy their own. They are not your employees so you don't need to buy them WC and the Employers Liability that comes along with your WC policy covers liability (beyond WC) to your Employees, which we agreed they are not.
If they are injured on your premises, your General Liability policy would cover you (or Homeowners if we are talking about contractors at your home). Your insurance company would probably try and deny or reduce a claim for them if they were injured on the job, claiming that their own WC carrier should pay first. The Massachusetts WC bureau is at http://www.wcribma.org/ The NCCI, which does not collect data or provide rates in MA, is at http://www.NCCI.com/. Search page for the MA DOI is http://www.state.ma.us/doi/search.html.
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