Workers’ compensation insurance provides coverage if an employee sustains an injury while working. This coverage provides reimbursement for medical bills and a portion of lost wages while the employee cannot work. A common misconception of business owners is if an employee is part-time or seasonal they are not required to provide workers’ compensation coverage.

An employer is required by law 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 is actually defined as a subcontractor and not an employee. The Workers’ Compensation Board requires an independent sub register as such.

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, not an independent contractor. Provides peace of mind to avoid uninsured injuries and penalties for not having a workers compensation policy if there should have been one in force.