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Independent Contractor. A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. An independent contractor contracts with an employer to do a particular piece of work. This working relationship is a flexible one that provides benefits to both the worker and the employer. However, there are drawbacks to the relationship as well.
Workers' compensation insurance is a policy to project workers if injured on the job. An independent contractor is not an employee.A business who hires independent contractors is not required to carry workers' compensation insurance on behalf of its independent contractors.f aspects of the worker's job are controlled by the company, including whether the worker receives reimbursed expenses and the company provides workspace, tools and supplies, then the worker is an employee and not an independent contractor. The worker in this scenario must be covered by workers' compensation insurance.