When Does the Law Require Workers’ Compensation?

Ara Derderian  –  Producer

Employers must provide safe working conditions for employees. When an employee suffers an injury on the job, he or she might have the right to obtain compensation from the employer. Such compensation comes in the form of workers’ compensation.

This type of claim can be expensive. A simple medical claim can cost thousands of dollars. Lost time at work increases those costs. Most companies need to obtain business insurance to reduce this risk. Workers compensation insurance provides that protection.

When Is Workers Compensation Legally Required?

Each state sets its own rules regarding workers compensation insurance. Most employers, with some exceptions, must buy insurance to cover work-related injuries. State law governs the specifics of these plans. In most states, employers have several responsibilities for workers compensation insurance:

  • They must carry this type of insurance. If a company does not have coverage, an employee can file a lawsuit against them. However, some companies do not have to offer workers’ compensation insurance, those these exceptions are extremely rare.
  • Employers must tell employees about workers compensation coverage. Post notices and signs providing the employee’s risks.
  • Employers should tell employees their right to receive medical treatment. They also have the right to select their own doctor or care provider.
  • Provide employees with claim forms when an injury or illness occurs. This documents the events. It also provides the employee with information about his or her rights. It serves as documentation for your business insurance agent as well

Consider the benefits. Workers compensation insurance helps employees get the care they need. It applies to situations where an employer holds responsibility for their losses. The employer gets coverage for those medical claims. This reduces your out-of-pocket costs for medical bills. Employers get less risk of lawsuits. Employees get medical care when they need it.

Getting a Plan in Place

The first step is to learn what your state requires. You can do this by speaking to your business insurance agent. You can also learn more at the Department of Labor’s website, www.dol.gov. State-specific information is available there as well.

Your agent can also help you find affordable policies. Many factors play a role in the cost of this insurance. This includes the type of business and its size.

Workers compensation insurance is a benefit to any company. No matter how large or small your company is, it reduces key risks. Speak to your insurer if you have employees. Discuss the benefits of a new policy. Update an existing one to match current needs. Don’t go without coverage.

We’ve got you covered. If you need business insurance, Knight-Dik Insurance. can help you get a policy in place to meet your unique needs. Call us at (508) 753-6353 for more information.


Should you have any questions about this article – or any insurance matter – please feel free to contact me at NOates@KnightDik.com or call me at 508-753-6353 Ext. 114.

Take control of your coverage and lower your premiums.