Many states legally require businesses with employees to have workers’ comp insurance, so if you are uninsured and an employee sues you for their medical costs, you could be responsible for paying out-of-pocket for their medical costs. As of 2025, data shows that the average cost for a workers’ comp claim was over $47k. And, depending on the state, you could face fines and other penalties. You’ve carefully recruited the top talent for your team; don’t let a workers’ comp claim take you out of business.
Employee accident or injury
Say that your employee slips and falls on the floor while cleaning your storefront as part of their duties for you. Workers’ comp can cover the cost of her medical expenses, as well as recoup lost wages while she recovers.
Employee illness
Your employee falls ill as a result of paint exposure in a poorly ventilated room during the course of their job duties; workers’ comp could cover the cost of his treatment and lost wages.
Employee disability
Imagine that your highly skilled employee has an accident while operating complex machinery at your workplace. If they’re unable to work because of their resulting injury, workers’ comp can cover some of their lost wages and even some of the cost of retraining for a new job.
Self-employed
You’re self-employed and you injure yourself while on the job. If you have opted to purchase workers’ compensation insurance for yourself prior to getting hurt, the cost of your medical care could be covered.
Why is workers’ comp insurance important?
What are the workers' comp insurance requirements in each state?
Follow the link to learn more about workers' comp requirements in your state.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
General Liability Insurance
General liability insurance or “CGL” coverage helps protect a business from the financial consequences that can result from third-party claims of property damage, bodily injury, and personal and advertising injury. That means the everyday accidents that can happen on the job: slip and falls, flying tools, or spilling coffee on a customer’s laptop—you get the idea. CGL is one of the most basic types of insurance for small businesses.
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Professional Liability Insurance
Professional liability insurance, also called errors & omissions (E&O) insurance, covers claims of financial loss as a result of providing—or failing to provide—professional services properly.
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Commercial Property Insurance
Commercial property insurance covers costs because of direct physical loss or damage to your contents in situations like a fire or windstorm. Even your accounts receivable can be protected by commercial property coverage.
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Business Owners Policy
A business owners policy or “BOP” is all the coverage most small businesses need in one easy package with two main coverages: commercial property insurance and general liability insurance.
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Business Equipment Protection
Business Equipment Protection is a type of first-party insurance that covers business equipment that you own, rent or borrow, used in connection with your business, and often away from your premises. (Other insurance providers for small businesses call it inland marine insurance, but we like to keep things clear and simple.)
Get a quoteWorkers’ Comp FAQs
Is workers’ compensation insurance required by law?
Usually. Workers’ comp is required in most states if you have at least one employee. It will provide coverage if an employee suffers a work-related injury or a work-related illness or disease. In fact, many states have made it illegal not to get workers’ comp coverage with your first hire. Find out your state’s insurance requirements and apply for a workers’ comp quote today.
Do independent contractors need to get workers’ comp?
In many states, independent contractors do not fall under the workers’ comp requirements of the entity for which they are providing services. If you are an independent contractor and have no employees, you may not have to purchase workers’ comp insurance, but this means you’re on your own to pay for medical expenses if you get hurt or sick due to your work. Even if you are not required to carry it, some clients may require contractors to buy workers’ comp insurance to limit the clients’ liability. Furthermore, if you hire employees or subcontractors, you will most likely be required to purchase workers’ compensation insurance for them.
I’m self-employed; do I need workers’ comp?
Self-employed individuals are also sometimes exempt from workers’ comp coverage (laws vary by state – see our full list of state by state regulations above). Consider buying a workers’ compensation insurance policy for yourself — even if you have health insurance — so you aren’t left footing the medical bill and missing out on wages if an accident occurs. It’s cheaper to get workers’ comp insurance than to face a pile of medical bills by yourself.
What does workers’ comp insurance not cover?
Workers’ compensation insurance does not cover injuries caused to non-employee third parties. Worker’s comp insurance also won’t cover injuries that occur to you outside of the scope of the employee’s job duties, injuries caused by intoxication or other substance abuse, or during non-work-related activities during business hours, such as recreational events.
When do I need to buy additional employers’ liability coverage?
It depends. Workers’ comp policies issued in non-monopolistic jurisdictions include employers’ liability coverage, which provides a legal defense in some situations where your employee claims that your negligence caused their work-related injury or illness. However, if you buy a workers’ comp policy from a monopolistic fund or a workers’ comp policy without employers’ liability coverage included, you would have to purchase employers’ liability coverage separately.
How do you calculate workers’ comp insurance costs?
This gets complicated, but workers’ comp calculations usually take several factors into account. Your workers’ compensation insurance rate depends on:
- Class codes: How states classify the type of work
- Rates for the class code: Determines your premium depending on the risk level of your job
- Payroll: How much you pay each employee per year
- Claims history modifier: How your state workers’ comp bureau compares your claims history to what’s expected from a business like yours.
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Fast & Easy
This is fast and easy and works great for me! I am a one man freelance landscaper and this gives me the ability to purchase insurance directly from my phone anytime and anywhere I need it.
Super easy to use! Thought of everything
This app is beautiful and super easy to use! It's super easy to get insurance for the weddings I shoot where the venues require insurance. I can just buy it on the app with 3 clicks and I'm done.
Awesome Product
I love this idea ????!! I needed to have proof of liability to present my proposal; got it on the spot. I didn't win the bid but I didn't get stuck with costly insurance, either!!
So Easy!!! I LOVE IT
It was so easy, quick, and simple. The PDF package I received contained everything I needed. This was the best experience I've ever had obtaining insurance...thank you!!!
Great rate!
I was very impressed with your monthly rate on general liability coverage! Much less than 1/12 of everyone else's annual rate.
I love the convenience
I love the convenience of this insurance app, its the best thing since sliced bread????????
