Overview of Self-Employed Workers' Compensation Insurance

In most states, the law requires employers to purchase workers' compensation insurance. Workers' compensation is a state-regulated no-fault insurance program that covers the cost of treating and compensating employees that sustain work-related illnesses, injuries or diseases.

Workers' Compensation

Employers must purchase workers' compensation insurance when the company has employees. Laws vary in each state, but in most cases, a company with just one worker must provide workers' compensation coverage.

The Self-Employed

In general, a business that does not have any employees is not required to purchase workers' compensation insurance. Self-employed business owners can choose to purchase insurance, but state law does not usually require it.

Workers' Compensation Insurance

If a self-employed business owner chooses to purchase insurance, policies are available through private insurance companies with authorization to sell the policy in the particular state. A workers' compensation policy provides coverage for medical treatment, wage-loss compensation, death benefits and vocational rehabilitation.

References

• FindLaw: Workers' Compensation In-Depth
• FindLaw: Your Right to Workers' Compensation Benefits FAQ