Federal Court: No Premium For Independent Contractors in Alabama

The 11th Circuit Court of Appeals has ruled that Workers Compensation premiums are not owed for independent contractors in Alabama. In Continental Casualty Co. v. Alabama Emergency Room Administrative Services, No. 09-12385, 12/3/09 it has been held that insurers are not entitled to charge premiums for independent contractors, as Alabama law stipulates that Workers Compensation benefits are payable only to employees.

The particular dispute in the case was over physicians sent to emergency rooms by a medical staffing company. Although premiums were paid for other workers who were employees of the company, the staffing company disputed additional premium charges sought by Continental Casualty, saying that the physicians were independent contractors who were not eligible for Alabama WC benefits.

Continental argued that because they could possibly be responsible for claims for these doctors, they were entitled to charge premiums. The court rejected that view, holding that since only employees are entitled to Alabama WC benefits, premium could not be charged for independent contractors.