The guys I used to fly for offered me contract work, but require a work comp policy. I cannot find anyone that will write me a policy. Anyone have any suggestions?

I'm not sure if they deal with smaller aircraft but Jet Professionals is a staffing outfit we sometimes use when we can't find someone ourselves. I'm pretty certain they provide workers comp for the crews they arrange.

Could this outfit you are talking to add you as a part time employee and cover you under their policy? They are going to have to pay for it one way or another.

Ask for Travis Johnson. We have several contract pilots and I send them here.


https://www.ensureagency.com/

Thanks for the link Rob.
I think I have found the solution.

If the outfit requires you to supply your own workers comp insurance, then it’s someplace I would avoid. Are they going to be paying the premiums or are you? If they are make sure they don’t talk you into “opting out” BTW Is this some sorta crop dusting operator?

AKJurnee wrote:If the outfit requires you to supply your own workers comp insurance, then it’s someplace I would avoid. Are they going to be paying the premiums or are you? If they are make sure they don’t talk you into “opting out” BTW Is this some sorta crop dusting operator?

Interesting view point. And yet having had numerous EIN/TIN since 1986 (that makes me an employer for longer than I'd care to admit) and in several states amd industries, my advice would be almost exactly the opposite.

The simple truth of the matter is that in most states, simply calling yourself a contractor does not make you one.

There are laws, regulations, licensure and expectations (call them hoops to jump through) before you actually get to wear that hat.

In many, If not most states, contracting without appropriate licensure is just plain illegal. To the insurance point, in many if not most states operating without appropriate workers compensation insurance is illegal. And that insurance is audited annually.

When your operator is audited he will need to prove that you are an employee, or a contractor. See above. If you meet that test (who's requirements vary by state) then the auditor will require a certificate of insurance from all contractors paid (contract pilot). Without this he will default to employee status because everyone must have coverage and the operator gets to foot the bill, and now you both have tax ramifications to address, because you didn’t handle those as an employee through the year.

My advice for anyone contemplating contract work as a pilot is the same as my advice for addressing tax work. Pull up your big boy shorts and do it right, because shortcuts are going to bite you in the ass later if you don't.

'Opting out'
If you are a contract pilot and are a single member, sole proprietor, etc, you insurance carrier is going to allow you to exclude yourself, and most will encourage it. They have any number of stories of folks getting hurt at home or play, with no one to contest the validity of where and how said injury occurred.
I'm not suggesting a person should opt to exclude themselves, that's a personal decision that should be made only after investigating all other ramifications. Do you have health coverage? Will they cover you at work?
As a general rule, if you have a policy as a single member and exclude your self you are essentially buying paper and blue sky, but everyone is covered and happy, equally important, you will get audited just like your operator does. And since you will not have any employees, you will receive a refund based on your risk, and how your policy is written. My experience has been that net net, the average contract pilot ends up with a couple hundred dollars a year invested for the privilege of contracting and now being able to explore new tax benefits of doing so. But I also realize some folks prefer the simpler employee status. And that's cool too.

This stuff is not rocket science, or anything to be afraid of. It is merely playing at the next level.


Take care, Rob