Are gig or 1099 workers entitled to workers’ comp? What to do if you’re hurt on the job … but aren’t a regular employee

As anyone who drives for Uber or Lyft… walks dogs or babysits as a part-time job… delivers food for DoorDash, GrubHub or InstaCart… works in a contract position or as an independent contractor… or serves clients as a freelance artist or writer knows, there are a lot of benefits to being what’s commonly known as a “gig” or 1099 worker.

You can usually set your own hours, work as much (or as little) as you wish, supplement your income from a main job, and easily take time off for appointments or to watch your kids play after-school sports.

Despite all these advantages, however, being a gig worker means you aren’t usually covered by important safety-net benefits such as employer-sponsored health coverage, 401Ks or retirement plans, unemployment insurance, or workers’ compensation. To get those valuable forms of protection, you generally have to set them up independently and pay for them yourself, which can be challenging from a financial perspective – not to mention that it can take a lot of time and effort to choose the best options for your situation and budget.

Beyond all that, if you happen to get seriously hurt while working a freelance or gig job, you’ll likely lose the income you were depending on, which effectively adds insult to injury! Fortunately, though, we’re here to help out folks who find themselves in situations like this, especially if you’ve been injured through no fault of your own while working as an independent contractor or performing a gig job.

Here’s what you can do if you get hurt as an independent contractor or gig worker

To begin with, you’ll want to know that you can (and probably should) buy your own insurance coverage to protect yourself if you happen to need financial help due to a work-related injury not covered by employer-sponsored protection. As Blue Cross and Blue Shield of Michigan notes, health insurance through the Affordable Care Act is available with federal subsidies for families who don’t have employer-sponsored coverage, even if their income is as high as $97,000 annually for a family of four. If your income is higher than that, you can still purchase affordable health insurance through ACA, but you won’t qualify for a subsidy. (Subsidies are subject to change, so be sure to check your eligibility with the insurance company when applying for coverage.)

In addition, the State of Michigan has resources for low-income residents who become disabled, and Social Security also provides its own disability coverage, which we discuss in a series of articles here. Beyond all that, personal short-term and long-term disability plans are available from a variety of companies in Michigan, but be sure to choose a reputable, licensed firm. The Department of Insurance and Financial Services (DFIS) maintains a database of licensed agents and companies, so you can make certain you’re dealing with a reputable organization. If you do run into problems with an insurance company, DFIS offers toll-free phone support at 877-999-6442 where you can seek assistance or file a complaint any weekday during regular business hours. (Along those same lines, we are always available to help all injured workers – including gig workers! – deal with reluctant insurers or irresponsible companies if they’ve been hurt on the job through no fault of their own!)

Some gig companies also provide their independent contractors with the opportunity to obtain insurance coverage through in-house plans or insurers they have endorsed. If you drive for Uber, for example, you can buy optional injury protection insurance directly from the company. Lyft also offers its own insurance plan with coverage that begins where your personal auto insurance ends.

Of course, your Michigan no-fault auto insurance may also help you out with Personal Injury Protection (PIP) benefits that can make up for lost income (in much the same way that workers’ compensation insurance provides this type of coverage) and also covers many other expenses you might face following an accident. But it’s important to know that PIP coverage can vary significantly from policy to policy as we explain here, so we recommend checking with your insurance agent to be sure your chosen PIP option provides all the protection you need and that your overall car insurance policy doesn’t have coverage exclusions if, for example, you’re earning money by driving paid passengers or delivering groceries.

Of course, if you aren’t covered by insurance… or your insurance company isn’t being helpful… you can also seek the assistance of our dedicated team of workers’ compensation attorneys. We can take legal action in cases where gig workers (and, of course, regular employees) are hurt on the job to help them receive fair compensation for injuries they’ve experienced through no fault of their own, acting as advisors and advocates so you’ll know your rights and won’t find yourself on the losing end of a bad situation.

Sometimes all it takes to get the ball rolling and receive compensation in cases of this type is a phone call or letter from one of our attorneys to show the guilty company responsible for your pain and suffering that you mean business. But if that first step doesn’t work don’t worry! Our client-friendly contingency-fee arrangement means you won’t pay a penny out of pocket for our representation, since we’re paid only through court-approved settlement funds. We think this is the right way to serve our clients, since it levels the playing field by allowing anyone – even folks with limited resources – to take advantage of the best legal minds in Michigan without taking a financial hit! To get us working for you, just make one quick call to 855-MIKE-WINS (855-645-3946). Or you can click right here to be taken right to our contact page right now!