You must use a two-step analysis to determine whether you must provide a worker with workers’ compensation insurance.
First, determine if workers’ compensation coverage is necessary if the worker is qualified as an employee under your state workers’ compensation law. Most states exclude certain types of workers from workers’ compensation coverage. You won’t have to provide coverage for workers who fall within these exclusions. Some states also don’t require coverage unless you have a minimum number of employees.
Second, if there is no exclusion for the workers involved, you must determine whether the workers should be classified as employees or ICs under your state’s workers’ compensation law. If they’re employees, you’ll have to provide coverage; if they’re ICs, you won’t. States use different tests to classify workers for workers’ compensation purposes.