Is a subcontractor required to carry workers’ compensation insurance if he/she is a sole proprietor?
A. Sole proprietors with no employees are not required to carry workers’ compensation insurance. However, detailed information must be provided to your insurer to prove that the individual is a true independent contractor. If your insurer determines that the sole proprietor is your employee, you will be charged for his/her payroll as per the appropriate classes on your policy. It is your responsibility to provide your insurer with all appropriate documentation to resolve their employment status.
