Did you know that workers’ compensation does not cover everyone who is part of the working world? In this week’s blog, we’ll explain what kinds of jobs are not covered and why that is. The main categories that are not covered are sole proprietors, volunteers, federal employees, independent contractors, railroad employees, and longshoremen.
Depending on your state, if you are the sole owner of a business, you will not be included in your company’s workers’ compensation insurance. However, there are some states that require insurance to include you as the owner, such as the state of Washington. You could be included if you pay an extra amount.
When you volunteer at a business, the reason you are not considered part of workers’ compensation insurance is very simple. As you are not receiving a salary, you are not considered an employee; therefore, it is unnecessary to be included in the insurance. Still, some organizations provide this insurance to their volunteers.
Federal, railroad, and longshore employees are not covered by this insurance because they have a similar, if slightly different, insurance. This insurance is not provided by a private company but is part of a program carried out by the state. Federal employees are covered by the FECA.
A railroad employee is protected by the Federal Employers Liability Act, which allows them to proceed legally against their employer if they do not have the correct workers’ compensation insurance. Longshoremen are covered by insurance that specializes in injuries that occur in water and docks.
Lastly, there are independent contractors, and this is a tricky subject. Mainly because it is common for some employees to be misclassified; therefore, you can proceed legally if that is your case. If it is clear that you are an independent contractor, then it is your responsibility to purchase insurance that covers your employment.
It is important that you have this clear so that you know with whom you should consult to proceed legally.