Business & Growth · Contractor Insurance
Self-Employed Contractor Insurance: What Coverage You Need
Self-employed contractor insurance starts with general liability. Add a license bond and workers comp only where your state requires them.
What does self-employed contractor insurance actually cover?
Self-employed contractor insurance is a stack, not one policy. It covers general liability, commercial auto, tools coverage, a license bond where required, and workers comp only where your state’s rule applies.
Health coverage sits outside all of it.
Do you need workers comp if you are a sole proprietor with no employees?
States disagree here, and guessing costs the most. Three state pages, read directly, say three different things.
| State | What the state page says about a sole proprietor with no employees | Source, verified |
|---|---|---|
| Texas | “In Texas, private employers can choose to carry workers’ compensation insurance coverage, but it is not required in most cases.” | Texas DOI/DWC, verified 2026-09-25 |
| Florida | Construction: “Employers with one or more employees, including the owner of the business who are corporate officers or Limited Liability Company (LLC) members, must have workers’ compensation coverage.” Florida law (s. 440.02, F.S.) counts “a sole proprietor who engages in the construction industry” as an employee. The state’s exemptions go only to corporate officers and LLC members. | Florida DFS/DWC and s. 440.02, F.S., verified 2026-10-23 |
| California | A licensee with no employees may “provide CSLB with a signed exemption, certifying that they have no employees at this time,” instead of proof of coverage. | California CSLB, verified 2026-09-25 |
What about general liability, commercial auto, and tools coverage?
General liability protects you if a job goes wrong and someone gets hurt or damaged. Commercial auto covers the truck in business use. A personal policy can limit or exclude business use, so ask your agent. Tools coverage, often inland marine, covers what is loose in the truck bed.
Here is the honest gap: none of the state DOI pages we checked prints a premium for any of these. Each insurer sets its own rate on trade, payroll, and claims history.
Turn a job photo into an itemized estimate, free →
How to build your self-employed contractor insurance stack
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Start with general liability
Many general contractors and property managers ask to see proof before you set foot on a job.
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Check your own state’s workers comp rule by name
A friend’s state rule may not apply to you. Texas, Florida, and California reach three different answers for the same no-employee situation.
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Get the bond your license requires, if it requires one
A license bond protects customers, not you. Confirm the exact figure on your state licensing board’s page before you buy.
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Add commercial auto and tools coverage as the truck and kit grow
These come next, once there is a dedicated work vehicle and enough equipment riding in it to insure on its own line.
Do you need a contractor license bond?
A bond is not insurance; it protects the customer, and a surety can come after you for a paid claim. Oregon’s Construction Contractors Board lists the Residential General Contractor bond at $25,000, effective January 1, 2024, up from $20,000. Your state’s board sets its own number; see our contractor license cost by state page.
Can you get health insurance if you are self-employed?
Yes, through the ACA Marketplace, separate from your license or business insurance. You count as self-employed if your business takes in income but has no employees (HealthCare.gov). You may qualify for premium tax credits based on income and household size.
Know the job’s value before you call an agent
SimplyWise Cost Estimator turns a job-site photo into an itemized estimate in about 6 seconds, so you know the job’s value before you call an agent. Every material, labor, and fee line is editable, and you can send a branded quote the client signs to approve. It is $29.99/mo or $239.99/yr, about $20/mo on annual, with a 7-day free trial.
Keep reading
- Contractor License Cost by State: fees next to bond amounts, state by state.
- How to Start a Landscaping Business: setup steps for a new one-person crew.
Sources
Workers comp, sole proprietors
- Texas DOI, Division of Workers’ Compensation, verified 2026-09-25.
- Florida DFS, Coverage Requirements, verified 2026-09-25.
- Florida DFS, Exemptions, verified 2026-09-25.
- Florida Statutes, s. 440.02 (definitions), verified 2026-10-23.
- California CSLB, Workers’ Compensation, verified 2026-09-25.
License bonds
- Oregon CCB, Licensing bond schedule, verified 2026-09-25.
Health coverage and product
- HealthCare.gov, self-employed coverage, verified 2026-09-25.
- SimplyWise Cost Estimator, App Store, 4.8 rating, verified 2026-09-25.
Frequently asked questions about self-employed contractor insurance
Coverage basics
What does general liability insurance cost for a self-employed contractor?
No state Department of Insurance page we checked publishes a premium for general liability. Rates are set policy by policy, on trade, payroll, and claims history. Aggregator “average cost” numbers are not government data, so none is repeated here; ask a licensed agent.
Workers comp and bonds
Do sole proprietors need workers comp insurance?
It depends on your state. Texas does not require it for most private employers. Florida counts a construction sole proprietor as an employee under s. 440.02, and its exemptions go only to corporate officers and LLC members, so a solo construction contractor there needs coverage. California lets a no-employee licensee file a signed Exemption from Workers’ Compensation form, though concrete (C-8), HVAC (C-20), asbestos abatement (C-22), roofing (C-39), and tree service (C-61/D-49) classifications cannot use it.
How much is a contractor license bond?
It is set state by state and license type by type. Oregon’s Construction Contractors Board lists its Residential General Contractor bond at $25,000, effective January 1, 2024, up from $20,000. Check your own licensing board’s page for your figure.
Estimating and pricing the job
Can I estimate a job’s value with my phone camera instead of measuring it myself, so I know how much coverage to carry?
Yes. SimplyWise Cost Estimator turns a job-site photo into an itemized estimate in about 6 seconds, giving you a real dollar value before you talk liability limits with your agent. Every line stays editable.
Can I get health insurance if I am a self-employed contractor?
Yes, through the ACA Marketplace, at healthcare.gov or your state’s own Marketplace if it runs one, separate from your business insurance or license. A business with income but no employees is self-employed for Marketplace purposes, and you may qualify for premium tax credits based on income and household size.
Know what the job is worth before you buy the coverage.
Snap a photo and get an itemized estimate before you call your agent or your licensing board. Free to try, then $29.99/mo or $239.99/yr after a 7-day trial.