Sole proprietors, freelancers, or any self-employed individuals do not have to buy workers’ compensation coverage. Therefore, self-employed people may not believe they have access to California’s workers’ compensation insurance, but that is not always the case. Self-employers may buy their own insurance workers’ compensation insurance to cover themselves. In situations where they are considered an independent worker, their subcontractors may offer workers’ compensation coverage in some cases. In these arrangements, the subcontractor may often account for their coverage into the independent contractor’s pay rate.
While there are ways for a self-employed worker to receive workers’ compensation coverage, it can be challenging to navigate an injury claim when the worker is self-employed. The best way to ensure you receive the coverage necessary and can file a successful claim should you be injured is to consult with a California workers’ compensation lawyer.
Before purchasing workers’ compensation insurance as a self-employed worker, it’s important to consider when it’s necessary and worth it to purchase personal insurance coverage. If the job you perform is dangerous, it’s beneficial to consider investing in workers’ comp insurance. For instance, many construction contractors are technically self-employed but are covered under the workers’ compensation insurance policy of a general contractor who employs them.
Other types of independent contractors and freelancers may sometimes need workers’ compensation coverage if they’re employed by a company that requires coverage for their workers. Companies tend to offer blanket coverage for all workers, independent contractors or full-time employees to avoid any potential issues if their employees are injured.
It’s important to note that it may be difficult for self-employed workers to purchase a workers’ comp policy on their own if they don’t work in a high-risk industry.
Determining the value of the workers’ compensation insurance policy a self-employed individual can purchase will depend on their industry. High-risk industries like construction or auto mechanic work would be considered high-risk. Risk classification is based on two factors:
In addition to the factors above, the worker’s income will also be considered. Generally, coverage costs a lot more for high-income, high-risk workers, but the cost of going without workers’ comp insurance can be far greater.
At KCNS Law Group, we believe in protecting the rights of injured workers. We understand that understanding workers’ comp laws and tackling a claim can be challenging, which is why we are dedicated to helping our clients pursue their right to fair compensation for any workplace injuries they have suffered. Whether you’re self-employed and self-insured or a full-time employee with a California business, you deserve to have your right to compensation protected if you suffered a workplace injury. To consult one of our attorneys, you can schedule a consultation at (818) 937-9255 or fill out our contact form.