I've been working with my insurance agent regarding this very issue.
As I understand it, it works like this (at least in GA):
If an independent contractor doesn't carry their own worker's comp insurance, while they are working they are automatically covered by the hiring company's worker's comp policy. If the hiring company get's audited by their insurance company at the end of the year, they will have to pay a fee for every independent contractor that they hire who did not carry their own worker's compensation insurance. Unless they have a worker's comp policy that allows for multiple uninsured contractors....which would be insanely expensive.
The hiring company is supposed to carry an insurance cert for every contractor they hire to show that the contractor has their own coverage.
This is why it's always safer for a company to hire a vendor who carries their own insurance and worker's comp.
I'm no insurance agent, so definitely check with whoever provides your coverage for more specific details.
Thank you for that information. No one has explained it to me that way, including the 2 insurance agents I talked to. They said it did not make any sense for me, as a sole proprietor with no employees.
As interesting as your explanation sounds, I still don't see how I could ever file a claim for workers comp with any of my clients. I only get hired by the day, and typical jobs might last a week. I thought you had to be working at a company for a year, full-time, before you could claim workers comp, and only after you had been "layed off". So how does it make any sense for me to pay $425 a year for this insurance? Any thoughts on that?