Workers’ Compensation Insurance
Frequently Asked Questions
Who Needs Workers’ Compensation Insurance?
If you have employees, there’s a strong chance you’re required by law to carry workers’ compensation insurance. In most states, this applies to businesses with even one employee—whether full-time, part-time, or seasonal. Workers’ comp provides essential protection for both employers and employees. It helps cover medical expenses, lost wages, and rehabilitation costs if an employee is injured or becomes ill due to their job.
Are independent contractors covered?
Generally, no—but misclassifying workers can create serious liability. If a contractor doesn’t have their own coverage, your policy could be pulled into a claim.
What happens if I don’t have Workers’ Comp?
You could face significant penalties, fines, and even be held personally liable for employee injuries—especially in states with strict enforcement.
How much does Workers’ Compensation cost?
Premiums are based on payroll, industry risk classification, and your claims history. Higher-risk industries typically pay more.