Solo Biz Soft Editorial Team Workers’ compensation insurance is built around employees, not business owners — so if you’re a solo sole proprietor with nobody on payroll, you generally aren’t required to carry it on yourself. That’s the general rule. It’s not the whole answer, though, since your state, your trade, and your clients’ contracts can each override it.
Why it’s usually optional for solo operators
Workers’ compensation exists to cover employees injured on the job — it’s not really designed around the business owner covering themselves. As a sole proprietor or partner with no employees, most states don’t legally require you to carry it on your own behalf. The moment that changes is the moment you hire your first employee; most states then require coverage, and the specific rules (which employees count, what triggers the requirement) vary enough that it’s worth checking your own state directly rather than assuming.
The exceptions that catch people out
Some states require workers’ comp coverage even for solo operators in specific higher-risk trades, construction and building trades being the most commonly cited example. Separately, even where the state doesn’t require it, a general contractor or client routinely requires proof of coverage as a condition of the contract itself — a certificate of insurance can be a practical requirement to get the work, independent of what the law technically demands.
Why some solo freelancers carry it anyway
Even when it’s optional, voluntary coverage can make sense if you do physical work on a client’s site, since your own health insurance generally won’t replace lost income while you recover from a work injury — workers’ comp specifically can. It’s a different kind of protection from general liability, which responds to a claim that someone else was hurt, not to your own injury while working.
Frequently asked questions
Do I need workers' comp the moment I hire my first employee?
In most states, yes, requirements typically apply once you have even one employee — confirm your specific state’s threshold and rules.
Can a client require me to have workers' comp even if my state doesn't?
Yes. This is common in practice — a client or general contractor can require proof of coverage as a condition of the contract, regardless of state law.
Does general liability insurance cover my own injury on the job?
No. General liability covers claims that someone else was hurt or had property damaged because of your business; it doesn’t cover your own workplace injury, which is what workers’ comp is for.
More free tools: General liability vs professional liability insurance · Business owner’s policy (BOP) · All free tools
This article is general information, not insurance or legal advice. Workers’ compensation requirements vary significantly by state and trade — confirm current requirements with your state’s workers’ compensation board or a licensed insurance broker.
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