{"id":5119,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/workers-compensation-faq.html"},"modified":"2024-05-23T02:32:32","modified_gmt":"2024-05-23T07:32:32","slug":"workers-compensation-faq","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/workers-compensation-faq.html","title":{"rendered":"Workers’ Compensation Insurance FAQ"},"content":{"rendered":"\n
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Workers' Compensation Insurance FAQ<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n\n

Small business owners\u00a0are often surprised when they learn that many of the same rules that apply to big corporations also apply to them. Workers’ compensation insurance is one of those things that small businesses may not think they need but must have by law.<\/p>\n

Most state laws require all businesses to have workers’ comp insurance regardless of the number of employees. In a few states, even sole proprietors must carry some coverage.<\/p>\n

It might seem absurd that a two-person office would need workers’ compensation coverage, but it makes good financial sense. Read on for the answers to these frequently asked questions about who needs workers’ comp and how it protects all businesses.<\/p>\n

What is workers’ compensation insurance?<\/h2>\n

Workers’ compensation insurance<\/a>\u00a0is a type of insurance policy that covers work-related injuries. Workers’ comp is a type of no-fault coverage. If the injury happens on the job or due to the employee’s interaction with the work environment, the insurance carrier pays 100% of the costs of medical treatment.<\/p>\n

Workers’ compensation coverage includes:<\/p>\n