Recommended minimum coverages and liability limits for independent contractors, vendors and service providers, including general requirements, certificate of insurance, specific insurance, and hold harmless and indemnification agreement.

No matter the reason for the use of an independent contractor, the organization must recognize and control the risks that are associated with them. Any savings expected from the use of an independent contractor can quickly vanish if good risk management strategies are not considered.

Misclassification of independent contractors is not only a tax issue; it also comes into play in several other areas of the law, such as the Workers’ Compensation Act, Fair Labor Standards Act, Minnesota Payment of Wages Act, etc. Therefore, unintended liabilities and penalties may result from misclassification of a worker as an independent contractor when he or she should be classified as an employee.

It is important for members to understand the relationship of independent construction contractors and workers’ compensation and how to avoid being responsible for work injuries of contractors' employees.

Tips for how to work with independent contractors to ensure that they have adequate liability insurance limits in place to match the member's policies and projects risk exposures.