Tattoo Studio Insurance AND % of Shop

Because of your discussion board I was able to determine how much % between artist and shop however, when an artist (s) applies for the position they react as if I'm ripping them off and some have never worked in a actual shop'. The question for insurance is I've been told by other shops in doing research that they the artist must carry their own insurance due to the fact that the IRS stipulates that if you carry insurance for the artists they become your employees.. So it's important to know the difference between IC and Employee'. Please give me some input on how to handle this problem, it seems some artists want me to put out all the money even though they are independent contractors ! I'm just trying to avoid any future problems w/the IRS... Thanx **America**