Can I add 1099 subcontractors to my workers comp policy?

In most states, you can voluntarily cover 1099 subcontractors under your workers compensation policy, but doing so has significant implications. Adding them means: (1) Their compensation becomes part of your payroll for premium purposes, rated at the applicable class code. (2) They receive the same statutory WC benefits as your employees. (3) Your experience mod is affected by their claims. (4) You gain the exclusive remedy protection, meaning they cannot sue you for negligence (only collect WC benefits). (5) The IRS and state labor agencies may view the WC coverage as evidence of an employment relationship, potentially undermining the independent contractor classification. Some carriers allow you to include 1099 contractors by endorsement, while others require them to be treated as employees for coverage purposes. An alternative used by some tower contractors is to require 1099 climbers to obtain their own WC through a state-specific sole proprietor program or through a professional employer organization (PEO). This keeps their exposure off your mod while still satisfying MSA requirements for WC coverage. Discuss the classification and premium implications with both your broker and your employment attorney before adding 1099 workers to your policy.