Do I Need Workers’ Compensation If I'm Self-Employed?
Many state laws require employers to carry workers’ compensation
insurance if they have at least one employee. If you're self-employed
with no employees, workers’ compensation may not be compulsory for you.
Purchasing one for yourself depends on your choice and the type of job
you do.
When Workers’ Compensation Insurance Makes Sense for Self-employed Individuals
To Fulfil the Terms of a Contract
Some organizations require independent contractors and freelancers to
have workers’ insurance coverage before hiring them. It isn't against
the law if they don't have coverage, but employers try to protect
themselves from any liability. There are scenarios where a contractor
sustains a work-related injury and tries to make claims from the
company.
If you're an independent contractor, having personal workers' compensation insurance can increase your chances of winning contracts.
To Cover Medical Expenses Independent contractors, sole proprietors, and freelancers may purchase workers’ comp coverage for when they sustain injuries. It's essential, especially for individuals working in high-risk fields.
A self-employed roof repairer might fall while climbing. He may already have medical insurance, but not all of such insurance cover work-related injuries. Also, if he can't work for several weeks, his benefits can replace his wages.
When Contracting Other Workers Depending on your state, you may need to buy a workers’ comp plan if you hire subcontractors. Some states also require general contractors to purchase coverage even when their subcontractors already have one. You can discuss with one of the top workers comp lawyers in Lancaster, PA, to understand how the state law works.
Some contractors will generally buy a policy to avoid situations where a subcontractor sues them for a work injury.
Obtaining Workers’ Compensation for Self-employed Individuals It's quite challenging to get workers’ compensation insurance as a self-employed person. The cost of one person is of little value to insurers. Many large insurance companies don't see it as a good investment.
Some private insurance firms offer individuals a policy, and the individuals' job determines the policy's cost. Find a private insurer that can provide you with a price you can afford.
Another option is the State Workers Insurance Fund (SWIF) for self-employed people in Pennsylvania. You can apply for SWIF as a sole proprietor, an independent contractor, or a freelancer, working with a particular company. However, you'll be agreeing to become a legal employee for that company.
Conclusion Workers’ compensation insurance for a self-employed individual with no employees is not mandatory by law. You may choose to purchase one for other reasons. If any workers’ compensation issue arises, you should contact one of the top workers compensation lawyers in Lancaster, PA.
If you're an independent contractor, having personal workers' compensation insurance can increase your chances of winning contracts.
To Cover Medical Expenses Independent contractors, sole proprietors, and freelancers may purchase workers’ comp coverage for when they sustain injuries. It's essential, especially for individuals working in high-risk fields.
A self-employed roof repairer might fall while climbing. He may already have medical insurance, but not all of such insurance cover work-related injuries. Also, if he can't work for several weeks, his benefits can replace his wages.
When Contracting Other Workers Depending on your state, you may need to buy a workers’ comp plan if you hire subcontractors. Some states also require general contractors to purchase coverage even when their subcontractors already have one. You can discuss with one of the top workers comp lawyers in Lancaster, PA, to understand how the state law works.
Some contractors will generally buy a policy to avoid situations where a subcontractor sues them for a work injury.
Obtaining Workers’ Compensation for Self-employed Individuals It's quite challenging to get workers’ compensation insurance as a self-employed person. The cost of one person is of little value to insurers. Many large insurance companies don't see it as a good investment.
Some private insurance firms offer individuals a policy, and the individuals' job determines the policy's cost. Find a private insurer that can provide you with a price you can afford.
Another option is the State Workers Insurance Fund (SWIF) for self-employed people in Pennsylvania. You can apply for SWIF as a sole proprietor, an independent contractor, or a freelancer, working with a particular company. However, you'll be agreeing to become a legal employee for that company.
Conclusion Workers’ compensation insurance for a self-employed individual with no employees is not mandatory by law. You may choose to purchase one for other reasons. If any workers’ compensation issue arises, you should contact one of the top workers compensation lawyers in Lancaster, PA.
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