Workers' Compensation

Covers employees’ medical bills and lost wages from job-related injuries. Required in most states the moment you have employees.

Workers’ compensation covers employees’ medical bills and lost wages when they’re hurt or become ill because of their job — regardless of who was at fault.

It’s a grand bargain: employees get prompt, no-fault benefits, and in exchange they generally can’t sue their employer over the injury. Most states require it the moment you have employees, and penalties for going without it are steep.

Premiums are based on your payroll and the risk of each job classification, then adjusted by your claims history through an experience modifier — so keeping workers safe directly lowers your cost.

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This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.