Business Insurance
Workers Compensation Insurance
Workers compensation insurance covers medical expenses and lost wages for employees who are injured or become ill because of their job. Most states require it once you have employees.
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What is Workers Compensation Insurance?
Workers compensation (workers comp) provides benefits to employees who suffer work-related injuries or illnesses. It typically covers medical care, rehabilitation, and a portion of lost wages.
In most states, employers are required to carry workers comp once they have employees. Requirements and benefits vary by state, so it's important to comply with your state's rules.
Key Benefits
Common Uses for Workers Compensation
Employee injury
An employee is hurt on the job and needs medical care
Occupational illness
Work-related illness or repetitive stress
State compliance
Meeting legal requirements for having employees
Contract requirements
Clients or contracts requiring proof of workers comp
Frequently Asked Questions
In most U.S. states, workers comp is required once you have employees. Requirements vary by state, including thresholds for number of employees and exemptions for certain business types (such as sole proprietors or family-only businesses). Operating without required coverage can result in fines and personal liability.
Workers comp typically covers medical treatment, rehabilitation costs, and a portion of lost wages for employees injured or made ill because of their job. It also generally protects employers from direct employee lawsuits for covered work-related injuries.
Generally, no. Workers compensation is designed for employees, not independent contractors. However, misclassifying employees as contractors is a significant compliance and legal risk. If you are unsure about worker classification in your state, consult a qualified professional.
Operating without required workers compensation can result in state fines, stop-work orders, and personal liability for the cost of employee injuries. Some states can shut down businesses that fail to maintain required coverage. The financial exposure from an uninsured workplace injury can be significant.
Related Coverage Options
General Liability Insurance
Covers third-party bodily injury, property damage, and advertising claims.
Learn more →Business Owner's Policy (BOP)
Bundles general liability and property coverage at a lower combined rate.
Learn more →Professional Liability (E&O)
Covers claims of negligence, errors, or omissions in professional services.
Learn more →Ready to Get Workers Compensation Coverage?
Get workers comp quotes that meet your state's requirements and your business needs.