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
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

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.

Read Other Blog Posts

What Counts as a Home-Based Business

What Counts as a Home-Based Business (and When Your Home Policy Isn’t Enough)

Understanding when your homeowners' insurance ends and business coverage begins is essential for anyone running a business from home. Learn what counts as a home-based business, common coverage gaps, and when you need additional protection.
Read more
Workers’ Comp 101 for Massachusetts Employers

Workers’ Comp 101 for Massachusetts Employers

Workers’ compensation rules in Massachusetts are strict and sometimes misunderstood. Learn who must carry coverage, common exemptions, audit triggers, and costly compliance mistakes employers should avoid.
Read more
Disaster Planning: Supply Chain Disruptions-Ships in Strait of Hormuz

Why Disaster Planning Matters: Protecting Your Business from Supply Chain Disruptions

Supply chain disruptions, whether global or local, can impact any business. Learn why disaster planning, supplier diversification, and the right insurance coverage are essential for resilience.
Read more
Hurricane Arthur a Reminder That Hurricane Season Has Begun

Tropical Storm Arthur—a Reminder That Hurricane Season Has Begun

Hurricane Arthur marks the start of the 2026 hurricane season—now is the time for Northeast property owners to prepare with smart maintenance and insurance review tips.
Read more
Cyber Insurance for Small Businesses What It Actually Covers and What It Does Not

Cyber Insurance for Small Businesses | What It Actually Covers and What It Does Not

Cyber insurance can help small businesses manage the impact of data breaches, ransomware, and fraud, but needs vary by business. Understanding coverage, planning ahead, and investing in employee training can help reduce cyber risk and avoid costly surprises.
Read more
National Safety Month- Building a Safer Workplace and a Stronger Business

National Safety Month: Building a Safer Workplace and a Stronger Business

National Safety Month is a reminder that workplace safety protects both employees and businesses. Learn how proactive safety planning can reduce claims, improve operations, and support stronger long-term risk management.
Read more
Work Meeting 1200

Health Plan Eligibility: Do’s and Don’ts

Employers have flexibility when defining health plan eligibility, but that discretion is limited by federal requirements under ERISA, the ACA, HIPAA, and Medicare rules. This overview outlines key eligibility do’s and don’ts to help employers stay compliant and avoid costly mistakes.
Read more
Man writing next to computer

Why Timely Notice Matters Under Claims-Made Liability Policies

Claims‑made liability policies require more than just having coverage in place. Timely notice of claims or potential claims is critical to preserve coverage and avoid unexpected gaps. This article explains how claims‑made policies work, how to identify if your policy is claims‑made, and practical steps businesses can take to stay protected.
Read more
Insurance Checklist for Owners of Vacation Rentals in New England

Insurance Checklist for Owners of Vacation Rentals in New England

Vacation or seasonal rentals in New England face unique risks, including vacancy, severe weather, and increased liability. Use this insurance checklist to ensure your second home or short-term rental has the right protection in place.
Read more
PreviousNext

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.