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Do You Need Workers’ Compensation as an Independent Contractor?

As an independent contractor, you have a lot on your shoulders. From overseeing construction sites to managing employees and their benefits. Workers’ compensation insurance might be one of the last things on your mind. It’s time to change that. 

Workers’ compensation for independent contractors can be an especially useful safety net to fall back on, should an accident occur on the job. As an independent contractor, now is the time to start researching why you need it.


What is Workers’ Compensation Insurance?

Workers’ compensation insurance is a type of insurance coverage that employers typically pay for to provide medical benefits and wage replacement for employees who are injured or become ill due to their work environment. 

Workers’ comp insurance can also cover legal fees and funeral costs in the event of a worker’s death. It’s a morbid extreme, but one that you have to prepare for just in case.


Do Independent Contractors Need Workers’ Compensation Insurance?

The answer to this question might depend on the nature of your work and your local state laws. In some states, independent contractors are required to purchase workers’ compensation insurance if they have more than one employee that works for them, while in other states there is no specific requirement. 

That being said, whether or not it is legally required should not be the deciding factor in this process. Workers’ comp for independent contractors can benefit you in the following ways:

  • Provides medical care and wage replacement if you’re injured or become ill due to your working environment.
  • Gives you protection against lawsuits that can arise from an accident or injury on the job.
  • Protects you from having to pay out of pocket for legal fees and other costs related to an incident.

It’s an extra expense, sure, but a worthwhile one.


How to Get Workers’ Comp Insurance as an Independent Contractor

Getting workers’ comp insurance as an independent contractor can be a fairly simple process, depending on where you live. Let’s break it down into three easy steps.

  1. Research the requirements of your state. Make sure you understand any laws that apply to independent contractors and their employees.
  2. Find an insurance provider or broker who specializes in workers’ compensation insurance for independent contractors in your state.
  3. Purchase a policy and get it signed off by the necessary parties, like your employer or client.

Is There a Penalty for Not Having Workers’ Comp Insurance?

Yes, there can be penalties for not having workers’ comp insurance if the laws of your state require it. Depending on the severity of the offense and other mitigating factors, those penalties could range from fines to criminal charges. 

It’s also important to keep in mind that if you don’t have this kind of coverage, you’re putting yourself at risk financially in the event of an injury or accident on the job.


Get Protected with Bethany Insurance

At Bethany Insurance, we understand that being an independent contractor can be overwhelming and stressful. That’s why we offer workers’ compensation insurance policies to meet your needs. Get in touch with us today to learn more about how we can help you protect yourself while you work.