Do Independent Contractors in California need to carry Workmen's Comp Insurance?
I am a freelancer in California and am being asked by clients for proof of workmen's comp, business license, liability insurance, etc. etc. - Sounds to me that they want me to be a small business - Is that correct? I am clearly an independent contractor - What is the deal?
Yes, even if your business has NO EMPLOYEES, you are required to carry workers compensation FOR YOU. The scoop is, if an independent contractor DOES NOT carry workers comp, then the person hiring them is RESPONSIBLE to pay for any workers comp benefits, and the amount paid to them would be picked up and charged when THEIR policy gets audited. So naturally, if they don't want to pay for your coverage, and pay your benefits, they need to show THEIR insurer that YOU have workers comp.
As an independent contractor, you ARE a small business. Or a large one, size doesn't matter!! What matters is, that you the person working on the job site, have workers comp and GL coverage. Otherwise, the guy hiring you to do the job is responsible for both.
Sorry.
depending on the size of your company...maybe.
If you are the owner of your company and the only employee... no. (on the workman's comp)
You SHOULD have a business licence
You SHOULD have liability insurance
You should have insurance to cover your own helth care in case you injure yourself at work.
You ARE a small business. Self-employed... but you are advertising and providing a service.
Answers:
Most states have laws in place where you aren't required to have workers' comp coverage unless you have a certain number of employees. You therefore may not be required to have coverage, but if so many clients are asking you about it, it might be a good idea to get it. Depending on what type of work you do, it might not be too expensive.
You might want to contact the California Division of Workers' Comp for more details:
http://www.dir.ca.gov/dwc/dwc_home_page.