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Workers comp insurance for a self-employed person typically costs $14 to $75 a month. Insureon’s data on small business customers puts the median at $54 a month, or about $648 a year, and NEXT Insurance lists workers comp starting at $14 a month, with 49% of its customers paying $75 a month or less. Your exact price depends on your trade, your state, and whether you buy real coverage for yourself or a ghost policy that only produces a certificate. This guide explains both, and when each one makes sense.
Do self-employed workers need workers comp insurance?
In most states, a self-employed person with no employees is legally exempt from carrying workers comp, but the exemption rarely settles the question. General contractors, property managers, and corporate clients routinely demand a certificate of insurance before they let you on site, and some states and licensing boards require coverage regardless of headcount. Texas is the notable exception: it does not mandate workers comp for most private employers at all. Check your state’s rule first, then check what your clients require, because the client requirement is usually the one that decides it.
How much is workers comp insurance for self-employed workers?
The honest answer is a range, because solo operators buy two very different products. The table below uses published figures from Insureon and NEXT Insurance, both drawn from their own small business customers.
| What you buy | Typical monthly cost | What it covers |
|---|---|---|
| Standard policy, low-risk trade (example: real estate agent) | From $15 | Your own medical costs and lost wages after a work injury |
| Standard policy, higher-risk trade (example: general contractor) | From $23 | Your own medical costs and lost wages after a work injury |
| Standard policy, median small business customer | $54 | Medical costs, lost wages, and disability benefits |
| Ghost policy (no employees, owner excluded) | A few hundred to around $1,000 a year | Nobody. It exists to produce a certificate of insurance. |
The NEXT figures are starting prices, not averages, and the Insureon median covers small businesses broadly, most of which have one to four employees. A solo operator in a low-risk trade should expect the lower end of the range. A solo roofer or tree worker should expect the higher end, and in some states may struggle to find a carrier at all.
What is a ghost policy, and when does it make sense?
A ghost policy is a workers comp policy written for a business with no employees that excludes the owner from coverage. It insures nobody. Its only purpose is to give you a certificate of insurance so you can satisfy a contract requirement and win work. Ghost policies typically cost a few hundred to around $1,000 a year, since your qualifying payroll is zero. Our guide to workers comp ghost policies and owner exclusions explains the mechanics in full.
A ghost policy makes sense when you are legally exempt, your clients demand a certificate, and you have other coverage for your own injuries, such as health insurance. It does not make sense when you actually want protection for yourself. If you get hurt on a job with only a ghost policy in force, there is no workers comp claim to file. Two more warnings: if you later hire employees or use uninsured subcontractors, the annual audit will catch it and you will owe additional premium. And some states restrict or ban ghost policies, so confirm yours allows them before you buy.
What if you want real coverage for yourself?
Elect to be included on a standard policy. Most states let a sole proprietor or single-member LLC owner opt into their own workers comp coverage, which then pays your medical bills and a portion of lost wages after a work injury, exactly as it would for an employee. The premium is based on your trade’s class code and your payroll, which for an owner is usually set at a state minimum or a declared wage. This is the right choice when your work is physical, when you have no health insurance, or when a single injury would stop your income entirely. Compare the premium against your health insurance deductible and your disability coverage before deciding, since the three overlap more than most solo operators realize.
What moves the price up or down?
Five factors dominate the quote. Your class code matters most: insurers price a clerical consultant and a roofing contractor as different species, because they are. Your state matters next, since rates are set state by state and some states run their own funds. Payroll is third: more payroll means more premium, which is why ghost policies cost so little. Claims history and safety practices come fourth, and your chosen limits and deductible fifth. The class code system is worth understanding before you shop, and workers comp insurance costs by industry shows how the same policy changes price across trades.
How to buy it without overpaying
Get quotes from at least two online carriers and one independent agent, and make sure every quote answers the same question: am I included or excluded? A ghost policy quote will always look cheaper than a standard policy quote, and comparing them side by side without noticing the difference is the most common mistake solo operators make. Ask each carrier for the quote in writing with the owner-inclusion status stated. Keep the certificate current, since lapsed coverage is a fast way to lose a client, and read what happens in a workers comp audit before your first renewal so the audit premium does not surprise you. If you are weighing this against other solo-operator coverage, life insurance for self-employed workers covers the income-protection side of the same problem.
Key takeaways
- Workers comp for a self-employed person typically runs $14 to $75 a month, with Insureon’s small business median at $54 a month.
- Most solo operators are legally exempt, but client contracts usually force the purchase anyway.
- A ghost policy produces a certificate and covers nobody. A standard policy with the owner included covers your own injuries.
- Always confirm whether a quote includes or excludes you before comparing prices.
Frequently asked questions
How much is workers comp insurance per month for a self-employed person?
Typically $14 to $75 a month. Insureon’s median for small business customers is $54 a month, and NEXT Insurance lists workers comp starting at $14 a month, with 49% of its customers paying $75 a month or less. Your trade and state move you within that range.
Can a self-employed person get workers comp insurance with no employees?
Yes. Most states let a sole proprietor or single-member LLC owner buy a policy, either as a ghost policy that excludes the owner or as a standard policy that includes the owner. Some states restrict ghost policies, so check your state’s rule first.
What does a ghost policy cost?
Typically a few hundred to around $1,000 a year, since the qualifying payroll is zero. A ghost policy covers nobody; it exists only to produce a certificate of insurance for clients who require one.
Is workers comp required for self-employed workers in Texas?
Texas does not mandate workers comp for most private employers, including the self-employed. Private clients can still require a certificate of insurance as a contract condition, so many Texas solo operators carry a policy anyway.
Does workers comp cover the owner of a business?
Only if the owner elects to be included on the policy. A standard policy with the owner included pays the owner’s medical costs and lost wages after a work injury. A ghost policy excludes the owner and pays nothing for the owner’s injuries.
