Federal and state labor agencies continue to closely scrutinize the use of 1099 contractors. The headlines over the last two decades are complete with stories of Fortune 500 companies paying tens of millions of dollars in 1099 misclassification settlements.

Despite the lessons over the past many years, organizations continue to lay misclassification landmines by using independent contractors that don’t carry their own workers compensation insurance. It’s all too easy for an independent contractor that’s injured on the job to file a misclassification claim if they don’t have their own workers compensation coverage.

Our cloud based insurance API embeds within the technology stack you use to manage contract labor (from spreadsheets to full-featured vendor management systems). The API takes as an input the type of job assignment and produces a rate on $100 earned for the pay-as-they-go, fractional insurance coverage issued in the contractor’s name.

If the contractor opts into coverage, the API takes, as additional input, independent contractor data which 1099Policy uses to bind coverage. Once integrated, insurance premiums are paid on a per assignment basis. Organizations can use the API to track coverage and run compliance audits to ensure all contractors have the required insurance.