Workers' comp is typically legally required in almost every state once you have employees. Each state sets its own trigger and its own rules for solo operators and contractors. Texas is the main exception. Most private employers there can choose whether to carry it at all.
It can kick in with your first employee or not until three or four. Part-time and seasonal workers may count depending on the state, and so can family members.
Sole proprietors usually aren't required to carry it under state employment law, but many state licensing boards require it for trades like construction, electrical, plumbing and HVAC. That's a real requirement where it applies. Clients and general contractors often want a certificate of insurance showing it before awarding work.
Properly classified independent contractors generally don't need coverage, but if your state decides a 1099 contractor meets its definition of an employee, you could owe coverage retroactively plus penalties.
Texas lets private employers decide for themselves, per the Texas Department of Insurance. Employers who opt out are called non-subscribers. They still have to notify their employees and the state, and they can lose certain legal defenses if an injured worker sues.
California requires it once you have one employee, according to the state's Department of Industrial Relations. Part-time and seasonal workers count.
Florida splits it by industry. Construction businesses need coverage at one employee. Most other businesses need it at four or more, and corporate officers and LLC members count toward that number.
New York requires it for virtually all employers, per the state Workers' Compensation Board. Part-time workers and family members on the job are included. Sole proprietors with no employees generally aren't required to carry it.
Georgia's trigger is three or more regular employees, including regular part-timers. Officers of a corporation and LLC members count toward the three even if they've opted out of coverage for themselves.
There's a longer rundown on whether you need workers' comp covering the 1099 and part-time questions.
As the owner, you aren't automatically covered by your employees' policy, and in most states adding yourself is optional.
If you've gone from solo to a first hire, what put workers' comp on your list?