Yes, in most states, businesses with employees are legally required to carry Workers’ Compensation Insurance. State laws vary, so it’s important to check specific requirements for your location.

Workers' Comp covers injuries that occur on the job or due to work-related activities, including:

• Slips, trips, and falls
• Repetitive motion injuries (e.g., carpal tunnel syndrome)
• Machinery accidents
• Occupational illnesses (e.g., exposure to hazardous materials)

Failing to carry Workers’ Comp can result in:

• Hefty fines and penalties
• Lawsuits from injured employees
• Criminal charges in some states for non-compliance
• Business closure in severe cases

In most cases, no. Workers’ Comp is a no-fault system, meaning employees receive benefits without having to prove employer negligence. However, if an employer intentionally caused harm or failed to provide required coverage, lawsuits may still be possible.

At the end of a policy period, insurance companies conduct an audit to verify payroll and employee classifications. If payroll was underestimated, the employer may owe additional premiums. If overestimated, they may receive a refund or credit.

Would you like any of these tailored for a specific industry, such as construction or roofing?

Workers’ Comp covers:

• Medical expenses related to a work injury or illness
• Lost wages for employees unable to work due to injury
• Rehabilitation costs for physical therapy or ongoing care
• Disability benefits (temporary or permanent)
• Death benefits for families of workers who suffer fatal injuries on the job

Premiums are based on:

• Industry risk level (construction and roofing have higher rates)
• Payroll size (higher payroll = higher premiums)
• Claims history (a history of workplace injuries can increase costs)
• Employee classifications (different job roles carry different risks)