The short answer: two layers
Whether you "need" workers' comp comes down to two separate questions people constantly mix up:
- The law (varies a lot by state). Most states require workers' comp once you have employees. A true solo owner with no employees is often exempt — but not everywhere. California, for example, now requires all licensed contractors to carry it regardless of employees, while Texas doesn't require it of most private employers at all.
- The contract (your customer). Even where the law exempts you, your customer — a general contractor, property manager, or owner — can require a workers' comp certificate, and for any real job they usually will.
Why customers insist (the audit mechanic): when a GC hires you and you don't show workers' comp, their carrier charges them premium on your payments at the annual audit — so an uninsured sub literally costs them money. That's why you'll hear "no workers' comp certificate, no work," even where the state doesn't require it.
Find your state
If you hire subs, this lands on you too
If you subcontract any work out, the same audit logic points at you: if your subs don't carry workers' comp, your policy gets charged for them. So collect and verify a certificate from every sub. Our free verification checklist and COI Checker help, and the COI Request Generator writes the request to send them.
Track every sub's insurance in one place
CoverProof reads each certificate, checks workers' comp and the rest against your requirements, and chases renewals automatically.
Get early access →General information, not insurance or legal advice. Workers' comp rules vary by state and change over time — confirm your specific situation with your state's workers' comp authority or a licensed insurance agent.