Workers Comp for Independent Contractors & Self-Employed: Quotes from $12/month

States have exemptions on contractor workers comp insurance. For one, you’re allowed to skip getting this policy if you’re an independent contractor without employees. 

However, it is still a good idea to consider getting coverage to safeguard your finances in case of an illness or injury at work. After all, the general contractor that hired you can’t provide help through his workers compensation insurance policy. 

The good news is that purchasing workers compensation insurance while working as an independent contractor does not have to be expensive. You may obtain the best workers comp coverage without spending much money upfront.

We will examine workers comp  for 1099 employees in more detail for independent contractors and self-employed people in this post, including what it covers, when you might need it, and how much it typically costs.

What is an Independent Contractor?

An independent contractor is a self-employed person or business that works for another entity under a contract or agreement. Independent contractors, instead of employees, have more autonomy over their work schedules, processes, and tools. Independent contractors cover their taxes, insurance, and other work-related costs. 

Benefits like health insurance, retirement plans, or paid time off are not part of  them. Independent contractors do not receive overtime compensation; they are paid a flat or hourly rate by employers. The relationship between the two parties is typically project-based, and the hiring entity does not deduct taxes from their payments.


Do You Need Workers Comp Insurance as an Independent Contractor?

An independent contractor and workers compensation insurance might be always intertwined. The laws in your state and the nature of your employment will determine whether or not you require workers’ compensation insurance as an independent contractor. If an independent contractor has one or more employees, some jurisdictions may require them to have workers compensation insurance. 

It is always a good idea to consult with your state’s workers compensation board or a qualified insurance professional to understand your legal responsibilities and determine whether you need workers compensation insurance.


Do You Have to Pay Workers Comp for Independent Contractors in California?

Independent contractors do not enjoy the coverage of workers compensation for contractors insurance in California. Yet, an independent contractor may be eligible for workers compensation payments if viewed as an employee. It can be a complicated legal question to decide whether someone is an employee or an independent contractor, and the answer depends on many different things.


Do You Need Workers Compensation Insurance for Independent Contractors in Nevada?

Independent contractors are typically exempt from Nevada’s workers compensation insurance requirements. However, they might need to offer workers compensation insurance if one or more people are employed. Contact the Nevada Division of Industrial Relations to learn more about your legal responsibilities.

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1099 Workers Comp Waiver

A 1099 employee is an independent contractor who works for a business. A 1099 employee may sign a waiver for workers compensation insurance by the employer. It is crucial to remember that consenting to a 1099 workers comp waiver does not automatically absolve the business of its legal duty to offer workers compensation coverage.

Employers with employees should  have workers compensation for 1099 contractors, although independent contractors are exempt from this need. An independent contractor, however, can be eligible for workers compensation payments if they are mistakenly classed as an employee.

Knowing their legal standing and any possible hazards involved with forgoing workers’ compensation coverage is always a good idea for 1099 employees. Speaking with a legal or insurance expert could be beneficial to ensure their rights are upheld.


Workers Comp for Subcontractors

The laws governing workers’ compensation in the event of subcontractors differ based on the state and the particular circumstances.Some states will require subcontractors to have their own workers comp for subcontractors  and the insurance held by the business or contractor they are employed.

By doing this, they ensure that the subcontractor gets protected in an accident at work. It may be the responsibility of the main contractor or business to reimburse subcontractors workers compensation costs in some areas. One can achieve this either through a policy that expressly covers subcontractors or by mandating that the business’s policy cover subcontractors.

Regardless of the particular arrangement, it is crucial for both contractors and subcontractors to be aware of the state’s workers’ compensation rules and to make sure that sufficient coverage is in place to safeguard everyone participating in the project.


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What is a Self-Employed Worker?

A self-employed worker is an individual who works for themselves rather than as an employee of an organization. Freelancers, independent contractors, sole proprietors, and business owners can all fall under this category. Self-employed people run enterprises, find customers, and determine prices. 

The same rights and advantages that apply to employees, such as workers compensation, unemployment insurance, and employer-sponsored health insurance, do not apply to self-employed workers. 

However, they also have greater freedom and control over their work schedules, assignments, and earnings. In today’s gig economy, where technology makes it simpler for people to work remotely and provide their services to clients around the world, self-employment is growing in popularity.


Do You Need Workers Compensation Insurance as a Self-Employed Worker?

Whether a self-employed worker needs self employed workers compensation or not depends on the laws of the state they operate in and the type of work they do. Self-employed individuals carry workers compensation insurance if they have employees working for them in some states. 

However, if the self-employed worker does not have any employees, they may not be required to carry workers’ compensation insurance. Self-employed workers need to understand the laws in their state and consult with an insurance professional to determine their specific coverage needs.


How Does Workers Compensation Insurance Help Independent Contractors and Self-Employed Individuals?

Independent contractors and others who work for themselves might profit in a number of ways from workers’ compensation insurance. These are five benefits that self employed workers comp can provide:

  • Coverage for accidents or illnesses at work–Workers compensation for independent contractors can assist in paying for medical costs, missed wages, and other expenditures due to an accident or illness

  • Protection from lawsuits–Thanks to workers comp for contractors, independent contractors and self-employed people might be shielded from lawsuits resulting from illnesses or injuries sustained at work.

  • Respect for the law–In some places, independent contractors and self-employed people must hold workers compensation insurance if they employ others.

  • Competitive advantage–Possessing workers compensation insurance can help independent contractors and self-employed people stand out to potential clients or consumers who may favor doing business with companies with sufficient insurance coverage.

The assurance that enjoys the cover in the case of a work-related injury or sickness can provide independent contractors and self-employed people peace of mind when they carry workers’ compensation insurance.

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Cost of Workers Compensation Insurance for Independent Contractors and Self-Employed Individuals

The cost of workers compensation insurance varies depending on many variables, such as the kind of work done, job risks, and the state where independent contractors and self-employed people perform tasks.

On average, the cost is $115 per month or $1,380 for independent contractors working on high-risk industries. Here’s a table showing a further idea of the rates:

Cost per Month Cost per Year Best for
NEXT $15 $180 Best overall; Fastest workers comp insurance for independent contractors
Hiscox $23 $276 Refund policy
Coverwallet $30 $360 Comparing workers comp insurance for independent contractors online
Tivly $35 $420 Flexibility
The Hartford $70 $840 Workers comp underwriting experience
Thimble $85 $1,020 Comparing workers comp insurance for independent contractors over the phone


Workers compensation insurance premiums are often determined by a person’s salary and the kind of work they do. Pay-as-you-go solutions are also provided by some insurance providers, which can be advantageous for independent contractors with varying incomes.

In general, it is crucial for independent contractors and self-employed people must consider the risks and expenses connected with work-related illnesses or accidents and take precautions to safeguard themselves financially. Although it may not always be necessary, workers compensation insurance can offer vital protection in the event of an accident or injury sustained while doing work-related duties.

Compare Cheap Workers Comp for Independent Contractors and Self Employed Online

Get all the best quotes from leading providers in a click of a button!

Best Workers Compensation Insurance for Independent Contractors and Self-Employed

Here are the best workers compensation insurance companies for independent contractors and self employed. Read some of the reviews below to know their pros, cons, and average cost. 


NEXT

Pros

  • Simple and quick application process: The online application process for NEXT insurance is simple and can be finished in a few minutes.

  • Offers affordable prices for workers’ compensation insurance, which can be a big benefit for independent contractors on a tight budget.

  • Offers comprehensive coverage for a variety of illnesses and injuries that could develop while you are working, including medical expenditures, missed earnings, and rehabilitation fees.

  • Versatile payment options: NEXT insurance lets you choose between monthly and annual premium payments, depending on your requirements.

Cons

  • Couldn’t find any

For independent contractors and self-employed people, NEXT, a digital insurance provider, offers workers’ compensation coverage. Overall, NEXT insurance can be an excellent choice for independent contractors and self-employed people looking for reasonably priced workers’ compensation insurance.

Best for: Best overall; Fastest workers comp insurance for independent contractors

Average cost: $15 per month

Our rating: 10/10

 

CoverWallet Insurance 

Pros

  • Customizable policies to fit individual needs

  • Affordable rates

  • User-friendly digital platform

  • Excellent customer support

Cons

 

  • Limited availability in certain states

  • No in-person support

Independent contractors and self-employed people can get workers’ compensation insurance through the digital insurance portal CoverWallet. They offer tailored coverage, low pricing, and online help for policyholders.For self-employed people and independent contractors looking for workers’ compensation insurance, CoverWallet is a reliable choice.

Best for: Comparing workers comp insurance for independent contractors online 

Average cost: $30 per month 

Our rating: 10/10


The Hartford Insurance 

Pros

  • Comprehensive coverage options

  • Personalized service

  • Competitive rates

  • An established and reputable company

Cons

  • Limited availability in certain states

  • No online application process

The Hartford provides independent contractors and sole proprietors with workers’ compensation insurance. They have operated for over 200 years and offer complete coverage, individualized attention, and affordable prices.Hartford is desirable for individuals on a budget because it also has affordable rates.

Best for: Workers comp underwriting experience

Average cost: $70 per month 

Our rating: 9/10


Tivly

Pros

  • Competitive rates, 

  • Flexible payment options, and 

  • A user-friendly online portal. 

Cons

  • Limited coverage options 

  • Strict eligibility requirements

Tivly provides independent contractors and self-employed people with workers’ compensation insurance underwritten by partners. Their coverage extends to medical costs, lost income, and disability benefits in the event of diseases or injuries related to their jobs. 

They also offer risk management and safety materials to help prevent accidents. Hartford is one of the top insurance companies in the business and has a solid reputation for exceptional customer service. Call a representative now to compare quotes over the phone. 

Best for: Comparing workers comp insurance for independent contractors over the phone

Average cost: $85 per month

Our rating: 9/10


Thimble

Pros

  • On-demand coverage is available by the hour, day, or month

  • Affordable pricing for short-term or project-based work

  • Quick and easy online application process

Cons

  • Traditional insurers may be more comprehensive than the coverage options available

  • Pricing may be less competitive for long-term coverage needs

Independent contractors and small business owners can purchase workers’ compensation insurance from Thimble on demand. Thimble’s plans are flexible and cost-effective for those requiring coverage for temporary or project-based work. They are available to buy by the hour, day, or month. Offers flexibility and affordability, with policies that can be purchased by the hour, day, or month.

Best for: Flexibility

Average cost: $35 per month 

Our rating: 9/10


Hiscox

Pros

  • Comprehensive coverage for medical expenses, lost wages and disability benefits.

  • Online tools and resources for managing claims and understanding coverage.

  • Flexible payment options to fit different budgets and cash flow needs.

Cons

  • Pricing may be higher than some other insurance providers.

Independent contractors and small business owners can purchase workers’ compensation insurance from Hiscox, an insurance provider. It  covers for medical costs, lost income, and disability benefits in the event of an occupational illness or injury. Hiscox additionally offers online tools and services to assist firms in managing claims and comprehending their policy. Hiscox also provides online tools and resources to help businesses understand their coverage and manage claims.

Best for: Refund policy

Average cost: $23 per month 

Our rating: 9/10

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