The number of independent contractors seems to be on the rise with close to one-third of the population working for themselves in some capacity. As a company, you are likely to work with independent contractors at least on occasion to fill in for an employee out on vacation or for a specific project. Here are some answers to a few common questions such as can an independent contractor drive a company vehicle?
You have a company vehicle to use for various daily tasks. Before you let an independent contractor drive the vehicle, you should look at your auto insurance policy. According to Daniels Insurance Inc, what commercial liability policy you need depends on the business needs. The contractor may need to have their own insurance policy.
In order to avoid problems come tax time, you need to make sure that the contractor is properly classified. Misclassifications could have the contractor seen as an employee rather than as an independent contractor. That wrong classification could put your business at risk for an audit.
As an independent contractor, they are likely not covered by your current workers’ comp plan. The contractor should carry their own insurance in case of injury or illness.
Your auto insurance carrier can better answer the question of can an independent contractor drive a company vehicle. If ever in doubt, write into the contract for the contractor to carry their own insurance.