Page 219 - DMGT304_EVENT_MANAGEMENT

Event Management

Notes Workers' Compensation Insurance

Workers' compensation insurance is designed to pay for medical treatment and rehabilitation
and to provide disability pay for workers injured on the job. The employer pays the premium
and the worker receives the benefits. Many states do not require workers' comp for smaller
companies, but that generally does not lessen your liability.

Independant Contractor Status

Best practices suggest that a company's only real defense against a future workers' comp claim
from a freelancer is to require that the independent contractor provide proof of worker's comp
insurance prior to any incident, or include that worker in your coverage.
If you choose to include your freelancers on your firm's workers' comp policy, this will provide
them coverage and protect your company. This will also create a potential employer-employee
relationship, which could make the worker eligible for any disability and paid time-off benefits
enjoyed by your other employees.

Agency-provided Labor

There is not much distinction between an agency and an independent contractor where compliance
is concerned, but an agency provides better defense against liability for the employer. When
you hire stagehands or technicians through an agency or broker, they are theoretically employees
of that agency.

Nonetheless, it is still best to require proof of insurance for both workers' compensation and
general liability from the agency. While most states do not require workers' comp, that does not
mean you should operate without it. The risks far outweigh the costs. Even if you book labor
through another party, that does not remove you from the chain of liability. Technically, you
could still be sued if the injured worker's agency is uninsured or if your direction somehow
contributed to the injury. Again, it is best to seek the advice and counsel of an insurance
professional for your specific business and locale.
Once these issues are understood, the manager will first have to decide what adjustments, if
any, are needed to comply with the law and, secondly, how to manage financial risk on
liability issues.

Notes Agency Provider Labour
There is not much distinction between an agency and an independent contractor where
compliance is concerned, but an agency provides better defense against liability for the
employer. When you hire stagehands or technicians through an agency or broker, they
are theoretically employees of that agency.
Nonetheless, it is still best to require proof of insurance for both workers’ compensation
and general liability from the agency. While most states do not require workers’
compensation, that does not mean you should operate without it. The risks far outweigh
the costs. Even if you book labor through another party, that does not remove you from
the chain of liability. Technically, you could still be sued if the injured worker’s agency is
uninsured or if your direction somehow contributed to the injury. Again, it is best to seek
the advice and counsel of an insurance professional for your specific business and locale.

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