Workers’ compensation insurance is essential coverage that protects employees and their families financially if a worker is injured or killed on the job. Also called workers’ comp and workman’s comp, it covers medical bills and lost wages due to work-related accidents. If a worker dies in an on-the-job incident, a workers’ comp policy can pay the family a death benefit.
States regulate workers’ comp insurance requirements. However, companies with employees are nearly always required to have coverage. But what if you’re an independent contractor with no employees? Are you required to have coverage for yourself? There are special considerations regarding workman’s comp for self-employed individuals.
Workers’ Compensation Insurance: Sometimes Required by Clients
States generally do not require independent contractors and other self-employed people to have workers’ compensation insurance. However, that doesn’t mean you are never required to have it.
While your state may say your business can operate without coverage, the companies you work with may have a different opinion. They may require that you have a workers’ comp policy and can prove it by providing a Certificate of Insurance (COI). If you don’t have coverage, they won’t accept your bid on the work.
Read the full story at Understanding Workers’ Compensation Insurance For Independent Contractors – ValueWalk