If you engage the services of an independent contractor who does not have Workers’ Compensation Insurance, the law may hold you responsible for work-related injuries.

Penn National Insurance may charge for any independent subcontractor who does not carry valid Workers' Compensation Insurance coverage, subject to individual state regulations.

State workers’ compensation laws consider direction and control, as well as the relative nature of the work performed at the time of a work-related accident, to determine whether an injured worker is considered your employee and eligible for workers’ compensation benefits under your policy.

If it is determined that you may be held liable, your policy states that you will pay an additional premium for either the independent contractor’s payroll, or the contract price if you do not have payroll records.

Some criteria a state may consider, as well as our auditors, to determine independent contractor or employee status include:


Employee Table

Contractor