When Do You Need To Buy Workers’ Comp as a Small Business? 


Workers’ comp insurance protects the employees in a business, and it is also mandatory in most states of the United States. Workers’ comp insurance can help cover the medical expenses, lost wages, and sometimes even the non-economic damages of employees suffering from work-related illnesses or injuries. If you have your own business, you may have many questions about workers’ comp. It is advisable to seek assistance from a professional, so click here to talk to an attorney and learn more. 

Workers’ comp for small businesses 

The laws differ from state to state, so it is important to consult a lawyer if you are confused. In most states, however, if a business has four or more employees, they must provide workers’ comp insurance. The requirements may differ based on the type of industry, the exact number of employees, or the entity organization. Certain industries are required to have workers’ comp insurance, such as: 

  • Construction companies having at least one employer. 
  • Agricultural companies which have at least six full-time workers and/or 12 seasonal workers. 
  • Non-construction companies with over three employees. 
  • Contractors should also ensure that independent contractors have workers’ comp at the start of a project. 

It is important to remember that you should not skip coverage even if you have less than three employees and even if they only work desk jobs. Accidents can still happen anywhere, so it is important to always be prepared. Some states may even require you to have workers’ comp insurance coverage even if you are the sole proprietor of your business. 

How does workers’ comp work for small businesses? 

If an employee sustains a work-related illness or injury, workers’ comp can protect the employer from liability. The following is what workers’ comp insurance can cover: 

  • Medical costs 
  • Lost wages 
  • Disability benefits 
  • Compensation for fatal injuries 
  • Rehabilitation and ongoing care 
  • Funeral expenses 

If an injured employee decides to file a lawsuit against your small business, workers’ comp can also protect you. Here is what the policy can pay for if an employee sues you for not preventing a workplace accident: 

  • Defense costs 
  • Settlement or judgment 
  • Court costs 

Get professional help today. 

If you have a small business, any small mistake can be disastrous. It is always better to be on the safe side, and consulting an experienced workers’ comp attorney can help you avoid mistakes and give you legal guidance regarding your steps. Schedule a consultation with an attorney today.