Anyone you pay money to for a service could be considered one, depending on your state laws. Tax withholding is not a prerequisite. Most states consider independent contractors one, unless they do similar work for others, own their own tools & equipment, sets their own hours and has a business license.
The proper way to insure them against injury is to purchase a workers’ compensation policy. They are excluded from coverage under a commercial general liability policy.
Also see: Independent Contractor
« Back to Glossary Index