Workers’ compensation insurance protects employers and employees in the event of an on-the-job injury. Employers are protected from costly lawsuits, and employees are guaranteed lost wages and the care they need.

Businesses need to understand when they should purchase workers’ compensation insurance. This type of insurance can help protect businesses and their employees if an injury or illness occurs while on the job.

Is Workers’ Compensation Insurance Required in All States?

In most states, employers must have workers’ compensation insurance as soon as they hire their first employee. This insurance is important because it covers injured or ill employees due to their job. Even if you are a sole proprietor of your business, you may be required to have workers’ compensation insurance to get a contractor license.

If you don’t have workers’ compensation insurance, you may have to pay for an employee’s work-related injury or illness yourself. Not having this insurance can also lead to penalties from the state.

Getting Workers’ Compensation Insurance for 3 Types of Employees 

  • Independent Contractors

You usually don’t need workers’ compensation insurance if you work for yourself. But some companies require the independent contractors they hire to have this insurance to protect themselves from liability.

Although you may not be legally required to have workers’ compensation insurance, getting coverage in case you are injured while working is still a good idea. This type of insurance can help to cover your medical expenses and lost wages.

  • Part-Time Employees

If your state requires workers’ compensation insurance for full-time employees, you can expect that the same requirement applies to part-time and seasonal employees.

  • Subcontractors

Some states require that you purchase workers’ compensation insurance for your subcontractors, even if they already have their own policy. It all depends on how your state classifies employees.

Why You Should Still Get Workers’ Comp Insurance Even If It’s Not Required

Workers’ compensation insurance is insurance employers purchase to cover medical expenses and wage replacement for injured employees on the job. Although the specifics vary from state to state, workers’ compensation insurance generally covers employees regardless of who is at fault for a workplace injury.

Workers’ compensation benefits business owners because it limits the amount of money they could potentially lose in a lawsuit. Most workers’ compensation policies come with employer’s liability insurance, which protects the business owner if an employee claims that the business owner’s negligence led to their injury. 

Once a workers’ compensation claim is settled, the employee cannot bring any further claims or lawsuits related to that specific injury or illness. This means the business owner is protected from additional legal action that could cost them time and money.

3 Benefits of Getting Workers’ Compensation Insurance

There are several reasons why an employer might choose to purchase workers’ compensation insurance, even if it is not required by law. Here are three of them:

  • The cost of the insurance premium is usually far less than the medical expenses that would be incurred if an employee were to get injured on the job. 
  • Workers’ compensation insurance can help to protect an employer from lawsuits filed by employees who are injured on the job.
  • Workers’ compensation insurance provides benefits to employees who are injured or become ill as a result of their job. Benefits can include medical expenses, income replacement, and death benefits.

What Happens When You Don’t Get Workers’ Comp Insurance?

If you don’t have workers’ compensation insurance and your employee is injured, you will have to pay for their medical treatment, lost wages, and other benefits. In some states, you may also be subject to fines, stop-work orders, or even criminal charges and jail time.


Workers’ compensation insurance is an important form of insurance for businesses and employees alike. It provides financial protection in case of an injury or illness sustained during employment. Workers’ compensation insurance is typically mandatory in most jurisdictions, and employers who do not comply with the law may be subject to significant penalties.

Pascal Burke Insurance Brokerage Inc. are specialists in an array of policies that cover not only general cases but also specialty contractors. Workplace injuries happen more frequently than you would think. You won’t have to worry about breaking the bank with our great rates! If you want to get handyman workers’ comp insurance, we’ve got you covered! Get in touch with us today!