You are required by law to carry workers compensation insurance for your production if you have employees. One of the biggest issues we find as an agency is when production companies hire subcontractors for help but they do so without really outlining the relationship to the subcontractor. The issue presents itself when/if the subcontractor injures themselves and they come to the production company expecting their medical bills and loss of income will be paid. Make sure that your subcontractor knows that they will be 1099’d at the end of the year and also make sure they know they are not an employee. A best practice is to have your subcontractors invoice for the production company for their work done while also providing the production company with a certificate of insurance.
Check out a short blip on a recently passed law in California regarding this specific issue. What is California Assembly Bill 5 (AB5)?