While the general rule (at least in Ohio) is that an employer is required to carry worker’s compensation coverage for all employees (and to pay the corresponding premiums), one-person businesses can avoid this requirement.

Ohio Revised Code 4123.01(A)(1) in defining “employee” states as follows:

If an employer is a partnership, sole proprietorship, individual incorporated as a corporation, or family farm corporation, such employer may elect to include as an “employee” within this chapter, any member of such partnership, the owner of the sole proprietorship, the individual incorporated as a corporation, or the officers of the family farm corporation.

While a sole proprietor need not obtain coverage for themselves, they are still required to obtain coverage for any employees that they may have. In addition, where someone utilizes the services of an “independent contractor,” there are circumstances where those individuals might later be determined to be employees in the event of injury or death based upon the relationship between the parties.

In the end, the business owner needs to weigh the cost of premiums versus the cost of cost of foregoing coverage. In most cases, the nature of the business helps inform this decision.