Employee or Independent Contractor – That is the Question

From Ask Tim — Whose insurance company covers a loss depends on whether the worker was an employee or independent contractor:

An insurer provided commercial general liability coverage for a sole proprietor in the plumbing business. This individual frequently did work for another plumbing company, which was insured by a different insurer. While the sole proprietor was working at a residence, a fire started and damaged the home. The sole proprietor looked to his insurer for coverage. However, the insurer denied coverage, arguing that he was acting as an employee of the other plumbing company at the time of the loss. Meanwhile, the insurer for the plumbing company also denied him coverage on the grounds that he wasn’t an employee (and therefore not an insured under its liability policy.) Suffice to say that our sole proprietor was not feeling the love from anyone.

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