Significant exposure arises when an Independent Contractor is uninsured and their injured workers become the responsibility of the hiring employer. This high risk exposure can be mitigated with these practices:
- The hiring employer can require all ICs to sign a contract that includes insurance requirements.
- The hiring employer should have a dedicated employee responsible for verifying the contract is signed and a physical copy of the valid certificate of insurance is collected.
- The hiring employer should have a dedicated employee responsible for periodically observing ICs while they are at work.
Working to implement these practices can significantly reduce the potential of a claim for an uninsured IC for whom no premium was collected. Making sure ICs have their own workers compensation insurance is the best way to mitigate these exposures.
ZORN offers loss control services, which can assist you with implementing these practices in addition to many other safety-related and risk mitigation best practices.