Many self-employed contractors across Missouri and Arkansas ask the same question:
“I’m self-employed — can a general contractor require me to carry workers’ compensation?”
The short answer is yes, they can.
Even if state law does not require you to carry workers’ compensation for yourself as a sole proprietor or independent contractor, a general contractor (GC) is allowed to set their own job site insurance requirements.
Understanding the difference between legal requirements and contract requirements is critical for protecting your business.
Legal Requirement vs. Contract Requirement
In both Missouri and Arkansas, sole proprietors and certain independent contractors may not be automatically required to carry workers’ compensation for themselves.
However, that does not prevent a GC from requiring proof of workers’ comp coverage before allowing you on a job site.
General contractors set these rules to protect their own business from liability exposure.
Why General Contractors Require Workers’ Comp
If a subcontractor is injured and does not carry workers’ compensation, the general contractor could potentially be considered a statutory employer under workers’ compensation rules.
That means the GC could become responsible for:
- Medical bills
- Lost wages
- Rehabilitation costs
- Potential legal disputes
To avoid that risk, many general contractors:
- Require certificates of workers’ compensation insurance
- Refuse access to job sites without coverage
- Withhold payment until proof is provided
Workers’ comp requirements are now standard in many construction and trade contracts.
Business Advantages of Carrying Workers’ Comp
For self-employed contractors, carrying workers’ compensation insurance can offer more than compliance.
It can:
- Protect your personal income if you’re injured
- Cover medical expenses after a job-site accident
- Improve credibility with general contractors
- Open access to larger projects and long-term contracts
Many higher-value jobs and commercial projects require subcontractors to show proof of coverage before bidding.
What Happens If You Don’t Carry Coverage?
If you decline to carry workers’ comp:
- You may be excluded from certain job opportunities
- You may need to sign waivers or indemnification agreements
- You could risk personal financial exposure if injured
Even if legally exempt, being uninsured can limit your growth and expose you to unexpected costs.
Should You Carry Workers’ Comp as a Self-Employed Contractor?
The right decision depends on:
- Your trade and risk level
- Whether you work on GC-managed projects
- Your personal financial situation
- Contract requirements
For contractors in Missouri and Arkansas, a policy review can help determine whether workers’ compensation coverage makes sense for your specific business model.
Understanding your obligations before signing a contract can prevent project delays, payment issues, and financial surprises.
When it comes to workers’ comp, it’s not just about what the law requires — it’s about what your contracts demand and how you protect your livelihood.