When does a business need to have worker’s compensation insurance?

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When does a business need to have worker’s compensation insurance?

If I am a small business, LLC, with mail box number but no physical offices. All business is done remotely. Do I need workers comp insurance? I am the only employee; I have 3 contractors from other states and outside the country who help me out once in a while.

Asked on January 18, 2012 under Business Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the entity that you are cinducting business under is a registered limited liability company in the state you are operating in and is in good standing with your state's secretary of state where you are its owner and only employee, you do not need worker's compensation insurance for your operations.

You should make sure that the three contractors that you reference that are from other states have an independent contractor's agreement with you.

Under workman's compensation laws, an employer is required to have worker's compensation insurance in place even if he or she (or the business entity) has one employee that is not related directly to the employer.


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