Most states require employers to carry workers compensation insurance. The requirement is for employers who have the required number of employees (this ranges from three to five depending on what state you live in). A workers compensation policy will pay for medical care and lost wages for employees who are injured on the job.

The coverage pays damages regardless of who is at fault in the accident. If the employee dies, the policy will pay compensation benefits to the employee’s family. Even if you are not legally required to do so, carrying this coverage may still be a good idea to make sure you are protected from legal liability when an employee is injured on the job.