While workers’ compensation laws vary by state, small businesses typically need a policy as soon as they hire their first employee (or a certain number of workers).
Even when not required by law, this policy protects against medical expenses and employee lawsuits related to workplace injuries, such as slip and fall injuries in the office, injuries from tools or machinery, and occupational illness.
You can also rely on workers’ compensation if you or an employee needs medical treatment 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’ compensation insurance, your business will be responsible for medical bills and legal fees. Most states also levy costly penalties for noncompliance.
Why is workers’ compensation insurance important?
Workers’ compensation insurance covers costs related to workplace injuries and illnesses that can escalate quickly due to the high cost of medical care.
