As a one man shop in MN, do I need this? I know it probably changes form state to state, just looking for input. It (work comp) seems like I don't need it since I have no employees. (work comp up here is through the state only)

Thanks,
Tom

In Il and tx one man shops aren't required to

In CA it is only necessary if you have employees. If you W2 yourself from your business then it is necessary.

One man shop and partnerships where all the workers are owners and there are no employees workmen's comp is not required in most states. Do check with an insurance agent in your state they should know.

Depending on your area, if you hire subs to help with projects you may be responsible to provide for them if they do not have their own, even if they are 1099.

You need to pay work comp for all employees except for the owner(s). The owner(s) do not need to pay until you reach somewhere around 28,000 total employee hours (including the owners hours). It's handled through your insurance company.

[Link: dli.mn.gov]

[Link: workerscompensation.com]

I was being lazy and guessed. It's been years since we were teetering on the cut line....

Here is the exception to owners:
[Link: revisor.mn.gov]

(7) an executive officer of a closely held corporation having less than 22,880 hours of payroll in the preceding calendar year, if that executive officer owns at least 25 percent of the stock of the corporation;

Just my 2 cents.

Whether or not it is required it is a good idea. Especially if you have a family. For example if you are injured in a wreck while you are working, comp would cover it and pay you money for time off. If you were to be killed in the wreck, your family would get a nice payout. It is cheap insurance for owners.

In NC, you have to have it.

Builders require it, and liability, for their annual audit. Without it, you won't be working on any new or remodel projects.

I too had an annual audit as well, and had to have proof of WC/Liability from any subs.


As stated, even it not required, it's a damn good idea to have it anyway.

Thanks for all the input, guys. I'm going to send the check in tomorrow. I talked to my insurance guy too. He echoed some of the sentiment here as well. Not specifically/legally needed for me, but still a good idea....

Bubby,
I was told workers comp doesn't cover the owner.

I would get workers comp. I recently lost a 40k job because the builder required it.
It's like $1500. And at the end of the year they check to see if you had any employees.

Lately I have been asked for it a lot.

I guess it depends on the state. In my state the owner can opt out, if they don't they are rated at $23,600 no matter their salary.

I have not been asked for it, and we are in the same state in the same county. It's also dependant on the salary of your employees. That part may vary state to state

Yes , you may have not but I think we are 2 very different companies. your Seo is very good and kicks my Seo's ass .I think you do much more volume than me.You said in a post a while back you didn't like the bigger jobs. I only want want the bigger jobs. And I have been very fortunate through connections to only take on a small amount of clients and make a living. But thru those connections I have to deal with things like needing workers comp because the bank funding the builder demands it or the apartment on park ave required it. This in no way is trying to be disrespectful. We have competed for the same jobs and you have won alot of the time.