Workers Compensation

What is Workers’ Compensation?

Workers’ comp is insurance that provides wage replacement and medical benefits to employees who get injured or sick because of their job.

• It protects the employee (so they don’t have to pay out-of-pocket for work injuries).

• It protects the business owner (so they aren’t sued directly by employees).

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Why Do Businesses Need It?

• Legal Requirement. In most U.S. states, it’s required by law as soon as you hire employees. Not carrying it can result in hefty fines, penalties, or even closure of the business.

• Employee Protection. Covers medical costs, rehab, lost wages, disability, or death benefits.

• Helps employees feel secure, knowing they’re covered if something happens at work.

• Business Protection. Prevents employees from suing the business for workplace injuries. Saves businesses from paying large settlements out of pocket.

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Who Needs It?

• Any business with employees (full-time or part-time).

• Even small businesses with just one employee often need it (depends on state law).

• Some states even require coverage for contractors, seasonal workers, or family members working in the business.

• Sole proprietors and partners are usually not required to cover themselves — but they can opt in for protection.