Get Workers’ Comp Insurance

The workers’ compensation system was created to ensure workers are taken care of if they are hurt on the job, while also protecting business owners from significant financial losses after an accident.

For example, if a heavy beam lands on a construction worker's foot and causes a compound fracture, workers’ compensation can cover medical expenses and lost wages during the recovery. Without insurance, the employer could be responsible for all related costs, which could add up to tens of thousands of dollars.

Workers’ compensation is not just limited to high-risk jobs. Repetitive-motion injuries (i.e., carpal tunnel), slip-and-fall accidents and strains are more common than you might think at relatively safe desk jobs.

There are several reasons why workers’ compensation is a good investment for your business:

Most states require Workers’ Comp

Because of the essential nature of workers’ compensation coverage, it is legally required in most states for businesses with employees. There can be significant penalties for non-compliance, ranging from fines to felony criminal charges in the most extreme cases.

It's essential to know the workers’ comp requirements in the states where you do business. For example, Colorado requires coverage as soon as you hire an employee. Workers’ comp in Texas is optional, but many businesses and government contractors will ask you to have coverage.

It protects employees — and business owners^†

Workers’ compensation coverage protects employees and business owners like you. Let's say human error, equipment malfunction or just plain bad luck leads to an employee breaking his leg. He's going to need X-rays, possibly surgery, physical therapy and several weeks of recovery until he can do his job again.

Workman's comp insurance can help pay for all those expenses. Otherwise, the business owner would most likely be responsible for covering costs out of pocket.

Even if you are a sole proprietor, you may want to consider getting workers’ comp insurance business owners coverage. Your policy can help you in cases that aren't covered by your health insurance. For example, your health insurance may exclude workplace accidents that would typically be covered by workers’ comp.

^† You must opt in for voluntary business owners' coverage.

It proves you don't cut corners

A trusting relationship between employers and employees can make a significant difference in productivity levels. When employees know that you have their back in both good times and bad, they are more invested in their work and focused on the job at hand.

Proving you take care of your employees will help you attract and retain the best workers in your area.

Workers’ compensation coverage is almost always required if you have employees as it partially covers medical bills and lost wages for those who are injured on the job. Business owner’s coverage helps to protect yourself if you don’t have employees. 

Workers’ comp can help pay for:

• Medical expenses
• Lost wages
• Survivor benefits in the event of an employee death
• Employer liability

Learn more about what workers’ compensation insurance covers.

A common misconception about workers’ compensation is that it’s only needed when a business has employees. In fact, many self-employed workers, sole proprietors and independent contractors purchase coverage for the financial protection it provides or to meet contract requirements with clients. 

It’s required to get a license for some professions, especially in construction. For example, many states ask for proof of workers’ comp insurance with their general contractor license requirements.

If you don’t have workers’ comp and you are injured at work, you also might not be covered by your personal health insurance. It’s important to read your policy documents carefully to make sure you are protected.