By the General Liability Guide Editorial Team. Our guides are verified against actual insurance carrier rate sheets and state industrial commissions.
If you have no employees, you might think workers' comp is a waste of money. However, in many states, you can't step onto a job site without it.
The "Self-Injury" Trap
Many health insurance policies exclude work-related injuries. If you're a sole prop and you get hurt on the job, your standard health plan might reject the claim. Workers' comp covers your medical bills and a portion of your lost income.
Industry-Specific Mandates
Construction and hauling are industries where sole props are often required by law to carry coverage, regardless of headcount. This prevents prime contractors from being liable for your injuries.
Frequently Asked Questions
Yes, it is considered a legitimate business expense and is fully tax-deductible for sole proprietors.
About This Guide
This guide was researched and written by the General Liability Guide editorial team to help business owners navigate the complexities of commercial insurance. We use data from industry leaders and regulatory filings to provide the most accurate estimates possible.