If You’re Self Employed, Do You Need Worker’s Comp

Worker’s compensation insurance, insurance that can help employees cover medical fees and lost wages for work-related injuries or illness, is required in almost every state for businesses that have employees. 

But, in an ever growing gig-economy filled with contractors and self-employed individuals looking to build their own businesses, set their own hours and be their own boss, it’s worth asking—if I’m self-employed, do I need worker’s comp? 

The short answer is, “no.” But, hang on. While in general, self-employed individuals with no employees are not required to purchase worker’s comp, here are a few reasons you still might want to.  

Some businesses require that contractors carry it 

Many businesses have a strict rule…if you work with them, you have to be covered. This includes contractors and subcontractors. If this is their rule, you might be required to purchase it depending on the laws in your state. Depending on the business, even freelance writers may be required to purchase it. 

You’ll be covered if injured while working

If your job often leads you into situations where you risk an injury, you might want to invest in worker’s comp. Regular health insurance does not cover work-related injuries so you risk losing out on income if you’re injured on the job. If you purchase independent contractor worker’s comp, you’re covered. 

You might want worker’s comp if:

• You tend to work with companies that require it
• You do physical work like construction 
• You are the sole provider for your family 
• You hire subcontractors to help you out

Consider these types of Insurance:

If you opt out of getting worker’s comp, self-employed individuals may be better off investing in these types of insurances instead. 

• General Liability: Protects you and your business from various claims
• Errors and Omissions: Protects you when a mistake is made
• Commercial Auto Insurance: Protects you and your vehicle if you use it to do business

There’s always some gray area when it comes to what types of insurance you may or may not need. If you’re not sure, just give us a call.  We’re happy to answer any questions you might have and help you find the right policy.