This is usually called "Workers' Compensation Insurance", or "Workers' Comp" / "Workmans Comp" for short.
By law, it's optional for sole proprietors. Reality can be different though. In the construction trades most general contractors will require any subs who are sole proprietors to have workmans comp. This is what their insurance companies require. If a sub doesn't have workmans comp the insurance company adds their wages to the gc's bill.
The employer, the insurance company, your state board of insurance and your state's workers' compensation bureau are all good to contact about Work Comp insurance fraud.
if your employer doesn't have workers comp insurance then you sue the company directly. Find a good lawyer.
what earnings must i report to workmans comp
Workmans Compensation Insurance is a good way to get insurance coverage without emptying out your wallet. You can find more information about the rules and responsibilities and other information on this website: www.workmanscompinsurance.net/faq.html
no
i lost a finger in 1983 do i get money for that
In some states being a sole proprietor with no employees allows you a waiver for the state required workmans comp insurance. However, many large companies as well as state and federal projects will require WC insurance, regardless of the waiver status.
4.5%
As each state's criteria for eligibility and amount of workman's comp payable differs, you need to contact your state's office for clarification.
Yes - and even if your state has an exemption for you because you have less than a certain number of employees or subcontractors, you remain liable even if you don't have Workers Comp insurance.