What type of coverage does a real estate salesperson have when working as an independent contractor?

When a real estate salesperson operates as an independent contractor, they do not benefit from employer-provided protections typically afforded to employees, such as workers' compensation coverage. Independent contractors are considered to be self-employed, which means they are responsible for their own insurance needs. In many cases, an independent contractor might not be automatically covered under an employer's workers' compensation policy, especially since they are not classified as employees.

Liability insurance coverage is essential for real estate salespeople as it protects them from claims of negligence or harm arising from their professional activities, but it is not automatically associated with their status as independent contractors. Unlike workers' compensation, which is designed to cover workplace injuries and related medical costs, liability insurance is a necessary safeguard for real estate professionals working independently.

Health insurance and property insurance coverages serve different purposes. Health insurance pertains to medical expenses, while property insurance usually relates to physical assets and does not directly relate to a salesperson's work status or coverage as an independent contractor.

Therefore, the correct focus is on workers' compensation coverage, as it is the specific type of coverage that discusses the protections for those in work-related scenarios—even in the context of independent work, emphasizing the distinction between employee and independent contractor status.