Owning a business comes with a lot of responsibilities, and one of those is ensuring that you and your employees are in safe hands. Doing your part to create a safe work environment can help you and your workers feel comfortable and confident while on the job and can reduce hazardous situations from occurring.
But accidents are bound to happen. Preparing for the inevitable with workers’ comp can help you save money on expensive medical bills and continue making money during the recovery process.
By definition, workers’ compensation insurance is a policy that provides coverage for medical costs and lost wages when an employee gets hurt or becomes ill on the job. This is required for all businesses that have employees.
As a sole proprietor, you may be the only employee under your business. In this case, you are not required to have an insurance plan. However, investing in workers’ compensation insurance for self-employed workers like yourself can help you cover the cost of hospital bills and wages lost while you’re out of work.
Technically, you only have to have sole proprietorship workers’ comp coverage if you have employees. That means if you hire independent contractors for work, you don’t need to have specific coverage.
However, it’s highly recommended that you encourage your contractors to invest in their own workers’ comp insurance for the self-employed. You could make it a requirement that your contractors must present proof of insurance before working for you. This is something to think about in advance, especially if you’re working in a dangerous industry like roofing or construction.
The rules vary depending on where you live. Typically, a sole proprietor is automatically exempt from having a workers’ comp insurance plan. However, if you as a sole proprietor want to purchase coverage and be excluded, you may need to apply for a worker's comp exemption. Sometimes this can be done by simply submitting a signed exemption form to your insurance carrier. In other cases, you may need to file a waiver with your state workers’ compensation agency to be exempt from having a workers’ comp insurance plan.
Whether you plan to hire employees in the near future or you need peace of mind while you’re on the job, Kickstand Insurance can help you find the right sole proprietorship workers’ comp plan.
Unlike traditional insurance providers, we can provide an instant quote for your insurance. Instead of waiting days or weeks for a coverage rate, we can provide the cost right away to you, online. Simply fill out this form and, within minutes, you can get a good estimate of how much your coverage will cost.
Workers’ compensation insurance can be useful when you own a business, even if you’re the only employee. Contact us today to learn more about our coverage options.