If I have my own hair salon and I recently added a booth renter, do I need to provide workers comp insurance for her even though she is not my employee?

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If I have my own hair salon and I recently added a booth renter, do I need to provide workers comp insurance for her even though she is not my employee?

She is considered to be an independent contractor. My insurance company said they have never heard of providing this insurance before in such a situation. Can you help me with this issue?

Asked on December 4, 2012 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, you do not need to provide worker's compensation insurance for a non-employee, such as an independent contractor or a tenant. (I've seen booth renters characterized as both.) You should have her sign an independent contractor agreement in which she acknowledges being an independent contractor (and that she is not an employee) and in which she agrees to provide all her own insurance.


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