Contractor Insurance You Can Trust

Is Workers Comp Required for Solo Contractors?

Most states don’t legally require solo contractors to carry workers comp — but client requirements often do. Here’s how to navigate both.

• ✓Most states exempt sole proprietors from mandatory coverage
• ✓Client and GC contracts routinely require proof of coverage anyway
• ✓Ghost policies satisfy contract requirements at minimal cost
• ✓Some states (like Florida) have construction-specific rules that apply to solos

Or call (234) 231-8427 — Mon–Fri, 9 AM–5 PM EST

State Law vs. Contract Requirements

In most states, sole proprietors with no W-2 employees are legally exempt from mandatory workers comp. You won’t face a state fine for not carrying it — as long as you remain truly solo.

However, the moment you bid on a commercial job, a government contract, or any project managed by a GC who requires certificates of insurance, the contract requirement overrides your legal exemption. The GC doesn’t care about your state exemption — they care that their certificate requirement is satisfied.

A ghost policy is a workers comp policy with an owner exclusion that provides a valid COI for exactly this situation. You’re paying for the policy, not for coverage of your own injuries — but you’re satisfying every contract requirement that comes up.

States with Stricter Rules for Solo Contractors

Florida is the most important exception. Solo contractors in construction in Florida must either carry workers comp or have an active exemption filed with the state Division of Workers’ Compensation. The general sole proprietor exemption doesn’t automatically apply to construction trades in Florida — you must actively file.

California’s worker classification rules under AB5 can affect solo contractors who work regularly for a single larger company, potentially reclassifying them as employees who should be covered under that company’s workers comp.

New York requires workers comp for virtually all businesses, including one-person operations in some circumstances. If you do any work in New York, confirm requirements before starting.

You Might Also Find Helpful

• Sole Proprietor Workers Comp Coverage
• Ghost Workers Comp Policies for 1099 Contractors
• Workers Comp Exemptions by State
• Do 1099 Contractors Need Workers Comp?

Solo Contractor? Get the Right Coverage Structure Today.

We’ll confirm your state’s rules and set up a ghost policy or full coverage — whichever fits your situation — the same day.