Workers’ Compensation 101

Workers' compensation insurance hero

Question 5

Who is Covered?

  1. W-2 Employees – State laws require coverage for all W-2 employees, including part-time employees, interns, and temporary workers.
  2. Business Owner / Executive Officer – State laws and requirements for owners and officers can vary by state, company structure, type of business entity, and sometimes the inclusion/exclusion of endorsements. Personal risk rules also apply.
    Tip: Review your personal health coverage before excluding an owner or officer from a workers’ compensation policy. Many personal health policies today exclude work-related injuries.
  3. Subcontractors – The employer is responsible for coverage, unless the contractor provides written proof of coverage – a certificate of insurance issued by the carrier who issues the policy (or the carrier’s authorized representative).
  4. Contractors paid via Form 1099 – If the person is working at the direction and control of an employer, they would be considered an employee of the company for which they are working in the event the subcontractor does not have workers’ compensation coverage.
Workers' Comp Q5

Next Question: What is covered?

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