Workers Compensation for Independent Contractors in Pennsylvania

December 6, 2024 | Workers’ Compensation

Workers Compensation for Independent Contractors in Pennsylvania

Pennsylvania workers’ compensation laws require employers to have workers’ compensation insurance when they have one or more workers. The rules for independent contractors in Pennsylvania are different.

What is an Independent Contractor in Pennsylvania?

An independent contractor is someone who works for themselves. They may also be referred to as a sole proprietor or self-employed. Classifying employees versus independent contractors is crucial.

The state provides guidance on determining whether a worker is an independent contractor or an employee. Workers are considered employees in Pennsylvania unless they can prove otherwise. An individual must meet the following requirements to be considered an independent contractor:

  • The person is free from direction or control over how they perform the services, both outlined in the contract of service and in fact, AND
  • The person is engaged in an independently established profession, trade, business, or occupation related to the services being offered.

Independent contractors in the construction industry must meet additional criteria under the Construction Workplace Misclassification Act to be considered independent contractors.

Do Independent Contractors in Pennsylvania Need Workers’ Compensation Insurance Coverage?

Employers are not required to provide workers’ compensation for independent contractors. However, independent contractors may purchase workers’ compensation insurance to cover them when they are working for a client. There are several reasons why independent contractors may need to purchase workers’ compensation insurance.

Protect Yourself If You Are Injured

If you are injured on the job, the client (i.e., employer) may or may not be responsible for your injuries. You would need to prove that the client or a third party negligently or intentionally caused your injury to sue them for damages.

Workers’ compensation insurance is no-fault insurance coverage. You do not need to prove negligence to recover damages. Hence, if you purchase workers’ compensation for yourself, you can receive financial help with medical bills and lost wages should you sustain a work injury.

Workers’ compensation insurance may be expensive for independent contractors. It is wise to discuss the cost and benefits with a qualified insurance agent. Other types of insurance, such as health insurance, a business owner’s policy, disability insurance, or business income insurance, may provide better benefits for the cost.

Clients Require Workers’ Compensation

Companies often hire independent contractors because they are not responsible for employee benefits, workers’ comp, employment taxes, and other expenses associated with employing workers. However, companies do not want to be liable for economic and non-economic damages if an independent contractor is injured. Therefore, a company may require proof of insurance from an independent contractor.

For example, companies in the construction industry often require their independent contractors to provide proof of insurance before they sign a contract for services because construction work is dangerous. Companies do not want to be financially liable for injuries sustained by independent contractors.

What Benefits Can I Receive From Workers’ Compensation Insurance?

If you are covered by workers’ compensation and hurt on the job, you may receive one or more benefits to assist you financially. Workers’ comp benefits include, but are not limited to:

Medical Coverage

Workers’ comp pays for necessary and reasonable medical treatment for on-the-job injuries. Examples of medical costs for a work injury include, but are not limited to:

  • Emergency medical care
  • Surgeries
  • Doctor’s bills
  • Hospitalizations
  • Rehabilitation
  • Physical therapy
  • Medical tests
  • Medications

You must see a doctor approved by your employer or the workers’ compensation insurance provider for the first 90 days after a workplace injury. After 90 days, you can choose a doctor for a second opinion if you desire.

Wage Loss Benefits

Disability benefits (i.e., wage loss protection) provide weekly financial payments if you cannot work during recovery. Workers’ comp disability benefits equal about 2/3 of your average weekly wages before the injury. Workers may receive partial disability benefits if they can work light duty.

If a work injury results in permanent impairments, a worker may receive permanent disability benefits. Additionally, specific loss benefits may be available for workers who lose a body part or sense because of the accident.

Vocational Rehabilitation

Vocational rehabilitation benefits provide training services to help workers get back to their jobs. If they cannot return to their jobs, vocational rehabilitation services help workers find and train for a new career.

Death Benefits

If a worker dies because of a workplace injury, the surviving family members may receive death benefits. Death benefits include funeral expenses and compensation for loss of life.

If you’ve been injured in a workers’ compensation, please contact Marzzacco Niven & Associates at the nearest location to schedule a free consultation today:

Harrisburg Law Office
945 East Park Drive, Suite 103 Harrisburg, PA 17111
(717) 231-1640

York Law Office
2550 Kingston Road, Suite 210A York, PA 17401
(717) 995-8998

Wyomissing Law Office
833 N. Park Road, Suite 103, Room A Wyomissing, PA 19610
(717) 388-2325

Chambersburg Law Office
79 St. Paul Drive, Suite 1 Chambersburg, PA 17201
(717) 388-2378

Carlisle Law Office
354 Alexander Springs Road Carlisle, PA 17015
(717) 995-8732

Carbondale Law Office
30 Lincoln Avenue, Suite 101 Carbondale, PA 18407
(717) 995-8810

Lancaster Law Office
2173 Embassy Drive, Ste 123, Lancaster Pa 17603
(717) 616-2954

Lebanon Law Office
937 Willow Street, Suite D Lebanon, PA 17042-1140
(717) 995-8963