You’re a One-Person Business. What Happens if You Get Hurt?

If you’re running your own business, you’re probably used to doing a little bit of everything. You answer the phone, meet with customers, do the work, send invoices, pay the bills, and handle whatever else comes up in a day. That independence is one of the best parts of owning a business. But it also creates a pretty big risk: What happens to your business if you get hurt? For many one-person operations, the answer is simple, the work stops and so does the money.

That’s why workers’ compensation coverage may be worth considering, even when you’re the only person working for your business.

“I Don’t Have Employees, so I Don’t Need Workers’ Comp.”

We hear this a lot and depending on how your business is structured, you may not be required by law to carry workers’ compensation coverage on yourself.

But “not required” and “not important” are two very different things.

If you’re a sole proprietor, LLC member, partner, or qualifying corporate owner, you may be able to exclude yourself from workers’ compensation coverage. That can save you money on your premium, and it also means that if you’re injured while working, you won’t have workers’ compensation benefits available to you.

Injured on the Job

You’re carrying materials down the stairs and slip, hurting your back. You suffer a hand injury while using equipment, fall from a ladder or in the worst-case scenario, you suffer a fatal injury. A workplace injury or death can happen in seconds, and it’s never planned.

For a one-person operation, your ability to work is your ability to make a living. If you can’t work for a week, a month, several months, or are unable to return to work at all, your business expenses don’t go away. Your truck payment, insurance, mortgage or rent, and other bills still come due while customers are counting on you. If you’ve chosen not to cover yourself under workers’ compensation, you or your family could suddenly be facing medical expenses, lost income, and the financial strain of keeping the business running.

“But I Have Health Insurance.”

Health insurance is important, but it isn’t the same as workers’ compensation. It may help with your medical bills, but it doesn’t replace the income you lose because you can’t work after a jobsite injury.

That’s where workers’ compensation comes in, it’s designed to provide benefits for covered work-related injuries, including medical expenses and wage replacement.

What Does It Cost?

The cost of including yourself under a workers’ compensation policy depends on your type of business, payroll, business structure, and the insurance carrier. Yes, including yourself may increase your insurance price, but it’s worth comparing that additional premium to the potential financial impact of being unable to work.

Worth a Conversation

If you’re a one-person operation, or perhaps you have a small crew but have excluded yourself, workers’ compensation may not be something you’ve given much thought to, especially if you aren’t required to carry it.

At Rousseau Insurance, we can review your current coverage, explain whether you’re included or excluded, and help you understand what options are available for your specific business.