6. Occupational Accident Program

Companies who use Independent Contractors are exposed to a unique problem.

If injured, the Independent Contractor who works only for one Company and does not have any other means of support or incidental work, can ask to have his contract reviewed by the labor board and if it is determined their employment meets the criteria of an employee, can ask to be treated under the Workers’ Compensation Policy of the Company. We always hope this does not happen, but it is unpredictable.

The Occupational Accident Programs provide a means for the Independent Contractor to be treated medically and provides income if they are injured on the job.

The Independent Contractor pays their own premium and carries their own policy.

If a Company is found to be using the Independent Contractor incorrectly, they can be audited and required to pay the premium to cover those employees not only for the current year, but for previous years as well. The Insurer has a risk for those employees for previous years.

Asking your Independent Contractors to provide Occupational Accident Insurance is the same as a Contractor asking Sub-Contractors to provide a Certificate of Workers’ Compensation Insurance before admitting them to a work site.