Do Contractors and Independent Contractors Need Workers’ Comp?

New York warns that workers under a business’s direct control may count as employees and that many subcontractors are covered; other states use their own tests and exceptions. If you misclassify a worker, your business may owe benefits or face a payroll adjustment.

Check each work state’s classification test and require contractors to show current coverage where applicable. Verify policy dates, covered states, and legal entity names; ask your insurer how uninsured subcontractor labor is handled in audits.