As an independent contractor, you may or may not need to have workers compensation insurance Workers Compensation Insurance. Workers Compensation regulations are mandated state by state.
If you are in business for yourself, and you do not have employees, you are most likely not required to buy workers comp. However, in some states you need to purchase workers comp even if you don’t employ others.
If you are a contractor who employs other workers, your state will most likely require you to carry this insurance. This policy protects workers from job-related illness, injury or death. It will also reimburse workers for lost wages if they cannot go back to work.
The benefit to you, as the employer, is that this coverage can help to prevent losses from employee lawsuits.