The question of whether independent contractors need workers' compensation insurance is more complex than it might seem.
General Rules
Most states don't require sole proprietors or independent contractors to carry workers' comp for themselves. However, there are important exceptions and considerations.
When You Might Need It
- Contractual requirements — Many general contractors and clients require proof of workers' comp before hiring subcontractors
- Industry regulations — Some industries like construction may require it regardless of employment status
- Hiring employees or subcontractors — Once you have workers, requirements change
- Personal protection — Without it, you're personally liable for your own work-related injuries
Consult with a BlackArrow agent to understand your specific requirements and options.
