Just because your business operates from your home does not reduce the need for carrying Workers Compensation insurance for any workers you employ.
New York state law describes a worker as either an employee or an independent contractor. It does not make any difference if the business is home-based. It is a determination based on other considerations.
Work with your agent at Access Legacy Insurance Group in Brooklyn, NY, to get your questions about Workers Compensation insurance answered.
Who is an Employee or an Independent Contractor?
An employee is a worker that must be covered by Workers Compensation insurance, where an independent contractor does not need Workers Compensation insurance.
You are an Employee
To be an employee, a determination is made based on the following criteria:
You are an employee if your employer determines the tasks you do, the hours you work, and the methods of your work. Your employer may provide tools, equipment to use, and fringe benefits.
If your employer has significant control over the work you do, then you are an employee and must have Workers Compensation insurance.
You are an Independent Contractor
An independent contractor is a self-employed person who provides services to businesses under a contractual agreement.
To be an independent contractor, a determination is made based on the following criteria:
You have more control over your work than a typical employee. You decide when, where, and how your work is done. You are responsible for your own taxes, benefits, and liabilities.
The company that hires you to do the work does not control the details of the work. Typically, an independent contractor works for more than one client.
One exception is, if the independent contractor performs the same kind of work as the employer.
For example, if you are a plumber, and you are hired to do a plumbing job for a plumbing company, this may change your status from being an independent contractor to becoming an employee. If you do plumbing work for another type of company, you would remain an independent contractor.
Consult with your agent at Access Legacy Insurance Group in Brooklyn, NY, about Workers Compensation insurance.
