Workers compensation insurance provides coverage if an employee sustains an injury while working. This coverage will provide reimbursement for medical bills and a portion of lost wages while the employee is unable to work.

A common misconception of business owners is that if an employee is part time or seasonal they are not required to provide workers compensation coverage. It is a requirement by law for an employer to obtain a workers compensation policy for any employee hired whether part time or seasonal.

It is also very important to be sure the relationship with any subcontractors hired are actually defined as a subcontractor and not an employee. The Workers Compensation Board has a predetermination of independent status form which will determine the need for a workers compensation policy or not. The requirement is based on the relationship instead of how the subcontractor is paid. Therefore, a subcontractor paid by a 1099 form may still be considered an employee if the relationship is that of an employee and not an independent contractor. Obtaining this pre-approval will provide peace of mind to avoid uninsured injuries and penalties for not having a workers compensation policy if there should have been one in force.