Does Workers’ Comp Cover Contractors?

Workers’ compensation eligibility turns on the governing law and the actual work relationship, not only the word “contractor.” New York says a worker under the hiring business’s direct control may count as an employee regardless of tax status, and it notes that many subcontractors can fall within its rules. A properly independent contractor may instead need their own coverage where required.

For each contractor, check the relevant state test, the contract, who directs the work, and current proof of the contractor’s insurance. Review your policy’s subcontractor and uninsured-subcontractor audit provisions. Do not assume a certificate by itself decides legal status or changes your policy. The hiring business should distinguish a contractor’s injury-benefit status from liability claims against the hiring business. Ask which policy responds to each scenario and how the state’s test affects the result.