Sole Proprietors and Partners Not Always Covered by Workers’ Comp

March 29, 2024||inBusiness Insurance|business insurance, workers comp, workers compensation insurance

Workers’ Compensation insurance policies issued to Sole Proprietors and Partnerships do not provide coverage for the individual sole proprietor or partner(s) unless they elect coverage for themselves. This can leave a gap in workers’ compensation coverage as shown in chart.

What does this mean to you?

Sole Proprietors and Partners Not Always Covered by Workers' Comp
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Sole Proprietors & Partner(s) – Make sure you have selected the proper coverage, as most companies already expect that you have it in place. You have bills to pay and could be injured like any other employee. Be sure you are protected so that you’ll have income in case you can’t work.

Other Businesses – Do not accept a certificate of insurance unless it lists the coverage status of the sole proprietor or partner(s). If you hire a sole proprietor or partner without elected coverage, he will revert to your workers’ compensation policy in an audit. This will increase your premium, especially if there is a loss. Ultimately, it is your decision whether or not to accept a certificate of insurance with excluded sole proprietors or partners; however, we recommend that you require “your” subs to have coverage in place to keep your costs down.

NOTE: This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information, contact a Murphy Insurance Agency professional.

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