An increasing number of companies are hiring more independent contractors to meet their business obligations. With independent contractors projected to make up nearly half the workplace in the coming years, owners need to make sure that they’re doing their due diligence when it comes to handling the placement of these types of workers. There are upsides to a company’s bottom line when it comes to hiring freelance workers. Often, these types of personnel are not offered certain benefits, resulting in savings. As an employer, you need to pay special attention to where and how you place freelancers.
Addressing Contract Workers
While allocating labor to contract workers seems like a no-brainer, you need to do your due diligence in their placement regarding the following:
- Liability Insurance. Your company may be insured for work that is completed by employees, but that coverage may not include the liability of independent contractors.
- Health Insurance. Agreements with your contract workers should explicitly define the relationship between freelancers and your company so that you’re not inadvertently penalized for not offering them health insurance.
- Intellectual Property. Contracts with independent workers should be clear about who owns the intellectual property or rights to the work product created.
Protecting Your Business
As the decision-maker for your staffing firm, you can appreciate the distinction between an employee and an independent contractor. It is important to make sure that your business practices are in compliance with rules and regulations, especially as they relate to contract workers. Consult a provider of Staffing Professional Liability Insurance for information and resources to protect your business.