Judging by the calls and emails we continue to receive on this topic, there still seems to be some confusion on who is covered and whether you need this coverage for your business. Therefore I would like to give a brief overview of facts so you can determine whether workers compensation insurance fits for your business.
First and foremost it is important to note that the NAPPS liability policy is a general liability insurance policy that provides coverage for bodily injury or property damage claims to a third party caused by your negligence. There is absolutely no coverage whatsoever under the NAPPS liability policy for injuries to you, your employees or independent contractors! This is also true of any general liabilty policy, regardless of who you purchase this coverage through. The exclusive remedy for injuries to you, your employees or IC's is workers compensation insurance. This includes covering claims such as dog bites, slip and falls, shutting your fingers in the car door, being pulled down or dragged by the pet, etc etc. All of which are common on the job injuries for pet sitters.
Unfortunately, unless you have been injured on the job or had an employee or IC suffer a claim within your business, it might be hard to fathom paying for this insurance. However, I highly recommend you give consideration to the consequences of not carrying this coverage. Suppose one of your sitters incurs a severe back injury from a slip and fall or suffers a serious dog bite. The national average medical costs on these types of injuries is approximately $24,000, and this is just the average! On the high end, when surgeries are involved, these claims can run over $100,000. These are just the medical costs! Now consider the fact that you or your employee can no longer work and provide for your/their family for a period of time. There is a reason why all those workers comp attornies advertise on television throughout the day—"Have you been seriously injured on the job?".
Please also keep in mind your individual state laws and penalties for breaking the law. Workers compensation coverage is compulsory in all states with the exception of Texas. States do differ on the number of employees you employ. Some states require if you have even 1 employee, while others may say 3 employees. But even if you have less than the number required, you still may be liable for their injuries!
States also differ on how they view independent contractors. Some states will say you are responsible for injuries to your IC's if they do not have coverage in place, while others states may say it is dependent on the relationship you have with the IC. If you utilize IC's in your business and are not 100% confident you are not liable for their injuries, I recommend contacting your state workers comp board/bureau/regulator, reading your state workers statute (all typically define IC relationships and can usually be found online), and/or contact an accomplished workers comp attorney in your area for consultation. If you are responsible for IC injuries, workers compensation is the only way to cover them. Therefore it is recommended that you require them to purchase their own policy and provide you with proof, if you opt not to cover them under your own workers comp policy.
If you have additional questions or concerns or want to know more about your individual state requirments or how much a workers compensation policy will cost you, please feel free to contact us anytime at 1-800-962-4611 or via email at dp@business-insurers.com.