Sole proprietors are not required to purchase workers' compensation insurance, but it may be beneficial to do so. ... However, if you're injured on the job, a sole proprietor workers' comp policy can help pay for medical expenses and replacement wages while you recover.

Do you need workers comp if you are self employed?

However, being self-employed means you won't have the same benefits that regular employees have access to, such as sick leave and workers compensation insurance. When you consider how important your health is to your ability to earn an income, it's clear that taking out some form of insurance cover is crucial.

Who is exempt from workers comp?

You don't have to provide health insurance. You don't have to pay payroll taxes. You don't have to make contributions toward their 401(k) retirement plan. You don't have to include them in your workers' compensation insurance policy (reducing your insurance premium).