Self-employed individuals usually aren’t legally required to carry workers comp for themselves, but many choose to — and the cost is typically based on a percentage of income or a minimum payroll figure. Rates depend on your trade’s risk class, your state, and the coverage amount, and a contract or client often requires proof of coverage even when the law doesn’t. You can buy a policy through a private insurer, a state fund, or a PEO.
This guide focuses on what coverage costs and how to actually obtain it. If your question is whether you’re required to have it, our companion piece on whether self-employment requires workers comp answers the eligibility side; here we cover pricing and the buying process.
Why Self-Employed People Buy Workers Comp
Even when it’s optional for sole owners, coverage is often worth it — or required by someone you work with.
- Client and contract requirements — General contractors and businesses frequently require subcontractors to show proof of coverage before awarding work.
- Medical protection — Personal health insurance may deny work-related injuries, leaving you exposed.
- Lost-income protection — Coverage can replace a portion of income while you recover.
- Winning bigger jobs — A certificate of insurance can be the difference between qualifying for a contract or not.
For the related question of business owners specifically, see whether workers comp covers business owners.
How Much Does Self-Employed Workers Comp Cost?
Premiums are generally driven by a few factors rather than a flat fee.
- Class code / trade risk — A roofer or carpenter pays far more than a consultant, because injury risk is higher.
- Income or payroll basis — Premiums are typically calculated per $100 of payroll or a state-set minimum payroll for owners.
- State — Rates and minimums vary widely by state.
- Coverage limits — Higher limits cost more.
Because rates are payroll-based, the math is similar to how employers estimate cost — our walkthrough on how to calculate workers comp cost per employee explains the per-$100-of-payroll method that also applies to owner coverage.
How to Get Workers Comp When You’re Self-Employed
- Confirm your state’s rules and whether owners can opt in or are exempt
- Identify your correct class code based on the actual work you do
- Get quotes from a private insurer, a state fund (in monopolistic states), or a PEO
- Decide on coverage limits based on your contracts and risk
- Request a certificate of insurance you can share with clients
- Keep coverage active and renew before it lapses
Not sure where to buy it? Our guide on where to get workers comp covers your options. If you also work as a contractor, see whether independent contractors need workers compensation.
If you want to estimate how workers comp, payroll, and compliance fit together for your situation, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.
Frequently Asked Questions
How much does workers comp cost for a self-employed person?
It depends on your trade’s risk class, your state, and your income or the state’s minimum payroll for owners. Low-risk professions pay much less than high-risk trades like roofing or construction.
Is workers comp required if you’re self-employed?
In most states, sole owners aren’t required to cover themselves, but clients and contracts often require it. Confirm your state’s rules — requirements differ.
Where can a self-employed person buy workers comp?
Through a private insurer, a state fund (in monopolistic states), or a PEO. You’ll typically receive a certificate of insurance to share with clients.
Why do clients ask self-employed contractors for workers comp?
To avoid being held responsible if you’re injured on their job and to satisfy their own insurance and contract requirements. Proof of coverage is often a condition of getting hired.
The Bottom Line
Workers comp for the self-employed is usually optional by law but frequently required by clients — and the cost depends on your trade’s risk, your state, and your income basis. Identify your class code, gather quotes from an insurer, state fund, or PEO, and get a certificate you can hand to clients. The coverage often pays for itself by unlocking bigger contracts.
If you want to see how bundling workers comp with payroll and HR through a single integrated provider can simplify coverage and certificates, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.
Self-employed and need coverage to land a contract? Confirm your class code and state rules, then gather quotes so you can produce a certificate of insurance when clients ask.
This article is for informational purposes only and does not constitute legal, tax, or insurance advice. Workers compensation rules, rates, and owner exemptions vary by state and change frequently. Consult a qualified insurance broker for guidance specific to your business.
