Workers' Comp & Auto · Insurance Term
Independent Contractor (1099 Contractor)
Definition
An independent contractor is a person or business hired to do a job who controls how the work is done and is not your employee. Property owners hire them for repairs, cleaning, landscaping and construction. Whether someone truly is an independent contractor depends on the facts, not just a 1099 form.
In Plain English
For insurance, the line between employee and contractor matters. Your workers' compensation insurance, if you carry it, usually covers employees. A contractor is expected to carry their own. If an uninsured contractor or one of their workers is hurt on your property, they may try to claim against you or your policy.
Calling someone a 1099 contractor does not settle the question. Courts and agencies look at who controls the work, the tools, the hours and the method. A handyman who works only for you, on your schedule, with your tools, may look more like an employee.
The simplest protection is paperwork. Before work starts, ask every contractor for a certificate of insurance showing general liability and workers' compensation, and keep it on file.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a strip center owner hires a roofer to fix a leak. The roofer has no insurance, and his helper falls from the roof. The helper may look to the owner for his medical bills and lost wages, a claim the owner's policy may not cover depending on its terms.
Why It Matters for Texas Property Owners
Texas workers' compensation is elective for most private employers, so a Texas contractor may legally have no workers' comp coverage. Employers that opt out, called non-subscribers, lose key defenses in injury lawsuits. Owners should not assume a contractor's workers are covered.
What to Watch For
- Collect certificates of insurance from every contractor before work begins.
- Ask whether the contractor carries workers' compensation or is a non-subscriber with another plan.
- Use a written contract that sets insurance requirements and an indemnity clause.
- Ask your agent how your policy treats injuries to contractors' workers.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write