Despite your best intentions, workplace accidents happen! Workers’ comp, makes it “no fault”: insurance benefits are the exclusive remedy. So you can keep your business … and your shirt.
Most state laws require you to carry it if you have employees. Many contracts you’ll sign with partners and vendors do too.
Each state sets its own regulations for workers’ comp. Most states require it as soon as you hire your first employee. Texas is the only state where it’s optional for employers to purchase workers’ comp.
In addition to differences across states, the construction industry often has separate rules from other industries. Visit our workers’ compensation state laws page to learn about the requirements in your state.
The employer’s liability section of workers’ comp protects the employer from lawsuits related to an injury, such as claims that the employer’s negligence caused the injury.
Your workers’ compensation insurance includes employer’s liability insurance – unless you purchased workers’ comp from a monopolistic state fund. If so, you can add this insurance as an endorsement from a private insurer. Read more about employer’s liability insurance.
Employers who do not pay for benefits typically purchase workers’ compensation insurance to cover the benefits for employees. Most states require businesses to carry workers’ compensation insurance with the exception of Texas and New Jersey. In those states, coverage is elective.
Employees are not responsible for paying for workers’ compensation benefits. The cost of this coverage varies greatly depending on many factors, including:
