Workers Comp Coverage for Self-Employed Individuals

Though rules vary per state, almost all require employers to provide workers comp insurance for their employees. But self-employed individuals are usually left to fend for themselves.

So if you’re a business owner or an independent contractor, chances are you don’t have workers comp coverage. This might not matter much for now but it will if you get hurt on the job.

How important is workers comp insurance for the self-employed?

You see, workers’ compensation is designed to protect people from financial distress caused by a work-related injury. It’s an assurance that even if you get injured and can’t work, you’ll still be able to meet your expenses.

If you’re a business owner with no employees, a work-related injury can mean temporarily closing your business. While for independent contractors, it can lead to lost contracts and even lawsuits. If you don’t have workers comp insurance, you’re basically putting yourself at risk of financial ruin. You won’t get any help with medical expenses or receive compensation for lost wages.

Even if you already have personal insurance, they may not cover work-related injuries. So getting workers comp insurance on top of that is always a good idea.

Getting Workers Comp Insurance for Self-Employed

In general, workers comp insurance for self-employed individuals is optional. But some states require individuals in high-risk industries to get one even if they don’t have anyone working for them.

In Florida, for example, sole proprietors and partners in the construction industry need to have workers comp coverage. Otherwise, they can’t get permits and may even have to pay penalties. They are not eligible for exemption unlike self-employed individuals in non-construction industries.

Some clients may also require contractors to get workers comp coverage before signing a contract with them. In fact, independent contractors often find it easier to get hired in projects when they already have workers comp coverage.

But is it possible to buy workers comp insurance just for yourself?

Definitely! Most insurance companies offer workers comp coverage for self-employed individuals. Some states also have a state-sponsored Workers Compensation Fund which allows coverage for self-employed contractors.

Obviously, the premium varies per person. How much you’ll pay depends on certain factors like:

  • where you live
  • what kind of work you do
  • your insurance claims history
  • your income

Unsurprisingly, the riskier your work is, the higher the premium you’ll have to pay. If you’ve claimed workers comp benefits before, it can also add up to your premium. And since lost wages compensation is based on a portion of your earnings, insurance providers also take your income into account.

A self employed person with workers compensation insurance.

Who is Liable When a Self-Employed Individual Gets Hurt on the Job?

When employees get hurt on the job, they can usually sue their employers for compensation. But such an option is not available for self-employed individuals. You’re basically your own boss and it’s highly unlikely that you’ll take yourself to court.

So who can you hold liable in case of a work-related injury?

It depends. In some states like Florida, you cannot hold your client liable for any work-related injury if they’ve fully disclosed the hazards of the job. Meaning, you took on the job knowing full well of the risks. So the blame falls on no one but you.

However, this isn’t absolute. The law provides that you can still sue your client for compensation if they:

  • exercise direct control in the works that you do (this essentially makes them your employer even if they claim otherwise)
  • negligently approves the dangerous working conditions

If your injury is due to your own negligence, that doesn’t necessarily mean you can’t claim workers comp from your insurance provider. Some states allow you to file for workers comp no matter whose fault the injury is, as long as it’s work-related.

How to Get Workers Comp Benefits If You Are Self-Employed

If you already have a workers’ compensation insurance, you’ll most likely get benefits if you got injured on the job. But even if you don’t, it’s still possible to get workers comp benefits.

As mentioned earlier, you can sue for compensation if your client has direct control of the work that you do. If you don’t have the freedom to do your job your way, then you’re not a contractor but an employee. As such, your employers should provide you with workers’ comp coverage.

It’s not unheard of for employers to erroneously classify employees as individual contractors to get away with employee benefits. So most states put in place sanctions for erring employers. If you can prove that you are indeed an employee rather than a contractor, you have a higher chance of getting workers comp benefits. Your employer may even have to face steep penalties.

But proving such can be difficult, time-consuming, and terribly exhausting especially if you’re still recovering from an injury. Hiring an experienced workers compensation lawyer like Victor Malca can take this burden off you. He has already helped thousands of injured workers in Florida fight for their benefits. He can help you get the benefits you deserve too. Call us now for a free consultation.


Victor Malca P.A. has over 25 years of litigation experience in Workers Compensation and Social Security Disability lawsuits. His experience and continued success in fighting for his clients puts among the most trusted workers’ compensation lawyers in Florida. Our area of expertise is in representing injured workers on compensation benefit cases and disabled individuals claim social security disability benefits.

Our unwavering advocacy for employee rights and privileges are recognized by our past clients across South Florida. Book a free consultation today.

Judy Ponio is a writer for Victor Malca LawAbout The Author

Judy Ponio is a writer for Victor Malca Law P.A. and enjoys helping people with questions about social security, workers compensation, and other serious matters involving people’s livelihood. She is not an attorney and her writing should not be considered legal advice.

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