As a sole proprietor, it's up to you to protect yourself and secure your financial future. One of the ways to do this is to purchase suitable insurance for business owners. Workers' Compensation insurance protects employees if they experience a work-related injury. You may feel free of the added expense if you are the owner and only employee. Since this type of insurance is mandatory in certain states, you may have to apply for a waiver if you choose not to purchase the coverage.
As a freelance writer, artist, or photographer, you may not experience many situations that put you at risk for a physical work-related injury. It is recommended that freelancers and other sole proprietors have some form of health coverage if they choose not to purchase Workers' compensation insurance. You must check with your insurance to know your state's requirements.
In most cases, if you are a sole proprietor with no employees to protect, you won't need to worry about buying a Workers' Compensation policy. There are even times when LLC members and corporate officers may be exempt from having this type of insurance. In states requiring a license to be an independent contractor, you may only be able to apply for a renewal if you have a Workers' Compensation policy or a waiver that exempts you from needing it.
Workers' compensation insurance's primary benefit is protecting your employees from financial loss if they are injured while on the job. It also protects you from being sued by your injured employee. Employees who accept Workers' compensation benefits also sign away their right to sue their employer. Workers' Compensation insurance provides peace of mind and a sense of security for both employee and employer. By working together, both parties get what they need and can continue working together to improve the situation.
Sole proprietors have several options if they don't want to purchase a Workers' Compensation policy or feel more is needed. General liability insurance and employer's liability insurance are two policies that will protect your business if you experience a situation in which an employee is trying to sue you after being injured while on the job.
Discover a world of specialized insurance solutions with GrayStone Insurance Group. Our experienced agents are dedicated to assisting businesses of all kinds in finding coverage that ensures mind relaxation and security. Whether you're seeking protection for unique risks or niche markets, we're here to guide you through the complexities of specialty insurance. Contact us today to explore tailored coverage options for your specific needs.
