An independent contractor coverage nuance: An independent contractor is not eligible for an organization's workers' compensation insurance unless he/she is in the same business.

• A. An independent contractor is automatically covered by employer's workers' comp.
• B. Independent contractors are never eligible for employer coverage.
• C. An independent contractor is not eligible for an organization's workers' compensation insurance unless he/she is in the same business.
• D. Independent contractor coverage is always guaranteed if the contract exists.

Answer: (C)

The key idea is that workers’ compensation coverage is based on the employment relationship, not just on having a contract. Independent contractors are not treated as employees, so they aren’t normally covered by an employer’s workers’ comp policy. The only exception is when the contractor operates in the same business as the organization; in that case, the relationship can resemble an employment arrangement for purposes of coverage, making it possible for the organization to extend coverage or require the contractor to carry appropriate coverage.

So the statement that fits is that an independent contractor isn’t eligible for an organization’s workers’ compensation insurance unless they’re in the same business. This reflects the general rule that coverage is not automatic and depends on the nature of the relationship and the work being performed.