I hear that. How about we re-try what you're saying.
-Don't hire the guy!
-Ask him or find someone who will operate under their own identity, either as an incorporation or most likely as a sole proprietor. Few people would want to go the incorporation route when they're by themselves.
-Require that this person get liability insurance and give you documentation of it and frequently check to be sure they are maintaining it.
-Require that they get their own health insurance and, ideally, long- and short-term disability.
-THEN, contract with them for work, being very careful to follow this
document.
Ways you could screw this up: You could end up treating them like an employee by having them report to you every day and use all your equipment. One day, the IRS could say - hey, you're treating this guy like an employee and you owe us employment taxes for him.
You could be held liable if he hurts himself or you hurt him somehow out on the job. It could get really ugly if his insurance had lapsed, and whoa, now you're fully responsible.
Important bottom line: Get an attorney to help you through this. The money spent now will help you get this straightened out. Otherwise, suck it up with the workcomp. We are. At 22%.