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High Rise ConstructionAs a business owner, you know the importance of providing a safe environment for your employees to work in. But in many situations, accidents happen even when the environment is safe. This is a major reason why Tennessee-based businesses with more than five employees are required to carry workers compensation insurance — a policy that helps cover the financial losses your employees may suffer in the event of a workplace injury. But, what if you use independent contractors? Do you need workers compensation then?

Defining Employees and Independent Contractors

Employees are individuals who report to a specific place to work and are required to perform specific tasks for financial gain. Today, though, many more people are moving from the classification of independent contractor to employee, so it's wise to work with an employee attorney to make the proper designation.

What's the difference between the two classifications? It all comes down to the amount of control the employer has over the employee. If you determine that your independent contractors are in fact not employees, you'll have to consider how workers compensation regulations impacts those individuals.

Workers Compensation and Independent Contractors

Workers compensation insurance does not provide for any coverage for independent contractors. This means that an independent contractor is hurt on the job, he or she will not be able to recoup their financial losses through your business, as you are not their employer.

But even if workers compensation coverage isn't required for independent contractors, you should still have a comprehensive business policy. This way, your business will be less likely to bear the financial burden of a lawsuit if an independent contractor is injured on the job.

Ready to get started? We've got you covered. Call Raymond Preston & Reed, LLC at (615) 866-2728 for a free Nashville workers compensation insurance.
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