Do I need Workers' Compensation Insurance?
For almost all businesses in the United States, yes. Workers’ compensation insurance usually isn’t optional. While workers’ comp laws vary by state, small businesses typically need a policy as soon as they hire their first employee.
Even when not required by law, this policy provides essential protection against medical expenses and employee lawsuits related to workplace injuries. For example, you can rely on workers’ comp if an employee needs medical care or time off due to a workplace injury – or if an injured employee sues you for failing to prevent an accident.
If you don’t carry workers’ comp, your business will be responsible for any medical bills and legal fees. And most states levy costly penalties for noncompliance.