{"id":5122,"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.html"},"modified":"2024-05-23T02:31:49","modified_gmt":"2024-05-23T07:31:49","slug":"workers-compensation","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/workers-compensation.html","title":{"rendered":"Workers’ Compensation Insurance for Business Owners"},"content":{"rendered":"\n
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Workers' Compensation Insurance for Business Owners<\/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

Workers’ compensation is in place to protect employees injured on the job. All states except Texas<\/a> require business owners to provide workers’ compensation insurance coverage. Even small businesses with a single employee must have coverage. Some states want all businesses to have workers’ comp, even sole proprietors. Small business owners should check their state requirements about business insurance and the number of employees needed for workers’ compensation to kick in.<\/p>\n

Workers’ comp insurance is separate from business liability insurance and any health insurance you may offer as an employee benefit. Workers’ comp covers a limited range of injuries and illnesses and protects employees and business owners. This article discusses the employers’ responsibilities and protections with workers’ compensation insurance.<\/p>\n

Worker’s Comp 101<\/h2>\n

Workers’ compensation<\/a> covers workplace injuries and illnesses caused by conditions unique to the workplace. Worker’s comp is “no-fault” insurance. The employee gives up the right to sue the employer for the injuries in exchange for full coverage of all medical expenses and related costs. In return, an employer must keep the injured employee’s job open while they recover from their injuries.<\/p>\n

Workers’ compensation benefits have restrictions. They only apply:<\/p>\n