Workers’ compensation insurance is not legally required for self-employed people, including independent contractors. However, there are certain circumstances where you may need workers’ compensation insurance to protect yourself and your business.
For instance, if you are an independent contractor who works in the construction industry or has a dangerous job, like roofing or plumbing, you should consider getting a policy with some kind of “umbrella” coverage that will cover potential work-related injuries.
What Are the Key Benefits of Workers’ Compensation Insurance?
Many self-employed people do not realize that workers’ compensation insurance is a benefit they can receive as part of their business package. It provides protection in case of an injury at work and provides benefits if you are unable to work because of illness.
The amount paid by workers’ compensation insurance is based on a percentage of your annual income. There are different benefits you can receive depending on the amount that is paid out by workers’ compensation insurance.
How Do I Get a Workers’ Compensation Insurance Coverage?
You can get workers’ compensation insurance through your employer, or you can purchase it yourself. If you are self-employed, the best way to get a policy is through an independent agent who will be able to help you choose the right coverage for your business needs and budget.
You may also qualify for government benefits like Medicare Part B if you have been injured on the job. Some employers also offer their employees coverage as well in exchange for lower wages and benefits.
How Much Does Workers’ Compensation Insurance Typically Cost?
The cost of workers’ compensation insurance depends on many factors, including the type of coverage you need and how much it will cover, how much money you have in savings as part of a self-insurance program and if you have a health plan that provides benefits for injuries at work.
The cost of workers’ compensation insurance can vary by state, and it is important to shop around when looking for coverage. You may be able to find lower rates with different companies if you compare quotes from multiple providers before making a decision.
What Other Insurances Do Independent Contractors Usually Need?
If you’re self-employed or work as an independent contractor, you may be required to carry other types of business insurance. This can include:
- Employer’s liability insurance
- Professional liability insurance
- Workers’ compensation insurance
- General liability coverage
- Business interruption coverage
The cost of these types of policies also depends on many factors, including your company size and the type of policy that is required by your state. It will depend on what kind of business you own, and its unique risk exposures.