The instructors should not be treated differently than any other contractors as respects obtaining General Liability and Workers Comp insurance. The business legal entity status, sole proprietorship, has no effect on whether they should provide your organization proof of insurance. As an organization, you should protect yourself from any act of negligence the contractors may cause you while on your premises. Ask all contractors to provide you with a Certificate of Insurance evidencing General Liability and Workers Comp and naming you as an Additional Insured.
Entities should also be cautioned that any contractors paid via 1099’s could be considered as employees at year end Workers Comp Audit. The insurance company will assume these contractors to have been your employees unless you are able to provide certificates of insurance from them evidencing Workers Comp coverage. The contractor’s payroll will be added into your audit and you will be charged the additional premium. It is very important to secure certificates of insurance and provide to auditors to avoid this additional cost at audit.
Lastly, sole proprietors may not be required to carry WC insurance and in those cases, you may request them to sign waivers. Seek legal counsel for further guidance on acceptable waivers.
American Alliance of Museums2451 Crystal Drive, Suite 1005Arlington, VA 22202