Are independent contractors covered by workers’ comp in Gurnee?
Workers Compensation - April 10, 2025
For individuals who have been injured while working, it is normal to wonder if independent contractors are covered by workers’ comp. Because independent contractors are not typically considered employees, they are not generally entitled to workers’ compensation insurance. However, categorizations may not always be clear, and this can have a significant impact on your rights and ability to receive workers’ compensation benefits.
Horwitz, Horwitz & Associates has extensive experience navigating various facets of the law that pertain to work and job-related injuries, as well as who may and may not be entitled to receive assistance in the event of an accident on the job. A Gurnee personal injury attorney can help you determine your options and what is required by state law so you know how to proceed.
What is the difference between an independent contractor and an employee?
Work control
Employees have structured schedules and supervision, while independent contractors have more autonomy over when and how they work.
Tax treatment
Employers handle tax withholding for employees who receive W-2 forms, whereas independent contractors manage their own tax obligations and receive 1099 forms.
Benefits
Employees typically have access to employer-provided benefits like health insurance and workers’ compensation, while independent contractors must arrange their own benefits and protections.
What criteria do I have to meet to be considered an independent contractor?
As the name implies, independent contractors often work independently from the business for which they are providing services. This is one of the features that sets them apart from regular business employees. To be classified as an independent contractor, the following must be true:
- You must not be under the control of another business.
- You must offer services outside the scope of the business being served.
- You are a sole proprietor of your own business or profession.
Depending on the nature of the independent contractor’s profession and services, you may also want to carry their own business insurance or liability insurance for their own protection. However, it is important to verify coverage for potential work-related injuries on the policy, or if additional insurance coverage is needed. Talk to various insurance companies to ensure that you have the best policy for your situation.
What happens if I am misclassified as an independent contractor?
If you are an employee who was misclassified as an independent contractor by a business, you could be missing out on workers’ compensation coverage and other benefits and rights of an employee.
Employers are required by law to provide workers’ compensation insurance to employees, and they can be fined for mistakenly or intentionally categorizing an employee as something other than what they are. This can happen if an employer is trying to avoid carrying workers’ compensation for employees. Non-compliant employers could be fined $500 for each day and have to pay a minimum of $10,0000. If you have been misclassified, you can take action against your employer and seek damages.
Contact Horwitz, Horwitz & Associates today
Horwitz, Horwitz & Associates can help you if you have been injured and may, in fact, be entitled to workers’ compensation if you were misclassified as an independent contractor. We understand that navigating Illinois employee classifications can be confusing, and we make sure you get the clarity you need and receive any compensation you could be entitled to receive.
To talk with a member of our team, contact us online or call our office at (800) 985-1819 to schedule a free consultation.
