Do I Need Workers’ Compensation Insurance?
Often yes if you employ workers, but the legal trigger depends on state law and worker classifications.
Workers’ compensation generally pays statutory benefits for an employee’s work-related injury or illness, including medical care and some lost wages. NAIC says nearly all states require employers to cover employees, while Texas is a notable opt-in exception for most private employers. A contract, public project, or other state rule may still affect your obligation.
List every state where people work, including remote staff, and identify employees, contractors, owners, and volunteers. Check each state workers’ compensation agency’s threshold and exceptions, then confirm the quote names the correct legal entity, states, locations, and payroll. If a client or general contractor asks for a certificate, that contractual request is separate from the legal test; review the contract wording and the policy dates before work begins.
Related Coverage
Sources
- Workers’ Compensation Insurance. National Association of Insurance Commissioners; Opening definition; mandatory coverage except Texas opt-in; exclusive remedy; monopolistic state funds; self-insurance note. Accessed 2026-09-25.
- Small Business Insurance. National Association of Insurance Commissioners; Typically covers medical expenses, rehabilitation costs and lost wages; check with your state insurance department; ask these questions / who qualifies as a covered employee (contractors, part-time staff, interns); payroll and type-of-work rating factors. Accessed 2026-09-25.
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.
