Generally no. Workers’ compensation, EPLI, and most general liability policies respond only to W-2 employees. Staffing agencies that engage 1099 contractors need separate contractor-specific endorsements and — importantly — a legal review to confirm the workers pass the IRS 20-factor test and the state’s classification rules. Misclassification exposes the agency to back SUI, back workers’ comp premium, and 1099 penalties.
Louisiana courts apply a stricter economic-reality test than the IRS 20-factor rule — see our Louisiana staffing guide. Request a compliance review: (877) 418-2484.
