When are individuals, such as independent contractors, included or excluded for coverage under an insureds policy?
The Rating Board, in its capacity as a data collection and statistical organization, cannot make binding legal determinations regarding the status of individuals under the Workers’ Compensation Law. Only the Workers’ Compensation Board (WCB) or a court of competent jurisdiction is empowered to make such rulings. Direction and control of the work performed is one criterion used by the WCB when it considers whether an employer/employee relationship exists. Using this criterion an individual could be considered either an employee or an independent contractor. If an individual provides his/her own materials to complete a job, they are probably acting in the capacity of an independent contractor. If the materials, however, are provided by the insured, the insured has the right, whether it exercises it or not, to direct how the materials are used. The courts have considered other criteria such as the method of payment to the individual, whether by lump sum or an amount determined by the hour
