The Impact of Contractors on Workers Compensation Audits: What You Need to Know
As an employer, it's important to understand the impact that contractors can have on your workers compensation audits. While contractors are not technically employees, they can still be covered under your workers compensation policy.
Here are a few things to consider when it comes to contractors and workers compensation audits:
Determine if the contractor is covered under your policy. In some cases, contractors may be covered under your workers compensation policy if they are working on your property and performing tasks that are integral to your business. However, this can vary by state and industry, so it's important to consult with your insurance carrier or a legal professional to determine if your contractors are covered.
Understand how contractors impact your premiums. If contractors are covered under your workers compensation policy, they can impact your premiums. Your premiums are based on the number of employees you have and the type of work they do, so adding contractors to your policy can potentially increase your premiums.
Keep accurate records of contractors. Proper record-keeping is crucial for workers compensation audits. Make sure to keep track of all contractor information, including their hire dates, job titles, and job duties. You should also keep track of any injuries or accidents that occur while they are working on your property, as well as the steps you took to address them.
Review your policy regularly. It's important to review your workers compensation policy regularly to ensure that it is still appropriate for your business and your contractors. This can help you avoid any surprises during the audit process and minimize potential costs.
By understanding the impact of contractors on workers compensation audits, you can better prepare for the audit process and minimize any potential costs. Proper record-keeping and policy review can help you navigate the audit smoothly and ensure that your business is properly protected.
