An EOR converts your contractor into a W-2 employee — stacking payroll taxes, benefits, and overhead on top of their pay, and ending the independent relationship. With 1099Policy, contractors stay 1099 and carry their own coverage — in their own name.
A.k.a. converting them to a W-2 they don't want, paying for benefits they don't need.
Coverage stays in the contractor's name. They stay 1099, you stay clean and compliant.
| Feature | EORW-2 conversion | 1099PolicyStays 1099 |
|---|---|---|
| What it does | Employs the worker as a W-2 employee | Helps independent contractors obtain coverage |
| Worker's status | Becomes an employee of the EOR | Remains an independent contractor |
| Insurance ownership | Employer-owned | Contractor-owned |
| Workers' comp | Covered under the employer's policy | In the contractor's name (where available) |
| General liability | Covered under the employer's policies | In the contractor's name |
| Professional & media / E&O | Typically a separate policy | Available in the contractor's name |
| Certificate of Insurance (COI) | Not typically issued by the worker | Issued in the contractor's name |
| Additional insured endorsements | Not typically contractor-specific | Available on issued COIs |
| Per-assignment coverage | Not designed for assignment-level coverage | Built for assignment-level coverage |
| Classification analysis | Not required — worker is engaged as an employee | Contractor status remains independent |
| Cost model | Payroll taxes + benefits + EOR fee | Priced per engagement |
| Added cost | Typically 20%+ above worker pay | A fraction of employment conversion |
| Coverage issuance & verification | No contractor-owned coverage to issue | Issue and verify coverage via API |
Most teams cut their contingent-labor insurance line by 90%+ in the first 60 days. Share your engagement data, we'll show you the savings.