Workers’ Compensation is an essential safety net for independent contractors / freelancers, providing financial and medical support when work-related injuries or illnesses occur. This coverage ensures that if a contractor is injured while on the job, they won't have to bear the burden of medical expenses, lost wages, or other financial hardships alone. In unfortunate cases of fatal workplace incidents, it also provides survivor benefits to their dependents.

Workers' Compensation for independent contractors

A common misconception is that Workers' Comp is not accessible to independent contractors, or that they do not need it. In reality, this coverage is designed to protect contractors and absolves monumental risk. Unlike employees who are automatically covered by their employers’ policies, freelancers need to secure this protection independently to safeguard their livelihood.

Key benefits include:

• Medical Expense Coverage: Ensures individuals receive necessary treatment without worrying about out-of-pocket costs.

• Income Protection: Compensates for lost wages while individuals recover.

• Family Support: Provides survivor benefits to dependents in case of a fatal work-related incident.

Calculating insurance premiums

Workers’ Compensation benefits and premiums are regulated at the state level, meaning both the coverage and cost will depend on:

1. The state in which work is performed.

2. The type of work performed.

For example, a freelance IT field technician may pay a different premium than a freelance graphic designer due to varying levels of job risk.

Why companies require Workers’ Compensation coverage

Many companies that hire freelancers make Workers’ Compensation a prerequisite for assignments—and for good reason. This policy reflects a company’s commitment to best-in-class practices, ensuring that all freelancers they engage are protected in case of an incident.

Here’s why it matters for contractors:

• It demonstrates professionalism and compliance with client requirements.

• It positions them as a reliable, prepared and independent contractor.

• Most importantly, it ensures that they are protected if the unexpected happens.

Why Workers' Compensation matters to contractors

Workers’ Compensation isn’t just an extra cost—it’s an investment in safety and financial stability. Accidents can happen to anyone, even in seemingly low-risk jobs. Having this coverage gives independent contractors and the enterprises that hire them peace of mind to focus on what they do best, knowing they’re covered if things go wrong.