Do sole owners/employees have to provide Workers compensation coverage?

Nina L. Kaufman, Esq.

Nina L. Kaufman, Esq.

An award-winning small business attorney in New York City, Nina is a sought-after professional speaker and Entrepreneur Magazine online contributor. She is the go-to counsel for knowledge economy and creative companies, delivering legal services and educational resources that save them time, money, and aggravation.

Posted on April 21, 2015 in Business Essentials

Q.: Am I required to have workers compensation coverage if I am the sole employee/owner?

A.: Generally, if you are self-employed, you are exempt from the requirement to have Workers’ Compensation coverage to cover yourself.  However, the minute you add an employee, get that in place – pronto!

Some states do allow you to “opt in” as a self-employed business person, but the rules about whether you can opt in to workers compensation coverage vary from state to state.

A good small business insurance broker should also be able to answer a lot of your questions about which insurances you need, what insurance limits you’d be wise to have, and what makes most sense for your particular industry in your state.

Here are more law questions about small business insurance.

 

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