Why Do You Need to Buy Workers' Compensation Insurance?

If you’re running a business—whether it’s a small startup or something more established—there’s a good chance you’ve heard about workers’ compensation insurance. At first, it might just feel like another thing to check off a long list of business requirements, but it’s actually one of the more important ones.

Here’s why it matters, and why you should seriously consider getting it if you haven’t already.

It’s Usually Required by Law

First off, in most states, you’re legally required to have workers' comp insurance if you have employees. Some states might let you slide if you're a sole proprietor or only have a few part-time workers, but many require it the moment you hire your first person. Not having it can lead to fines, penalties, or even legal trouble.

Basically—don’t skip it just to save money upfront. It can cost way more later.

Accidents Happen (Even in “Safe” Jobs)

It doesn’t matter if your team works on a construction site or at a quiet office desk—accidents can still happen. Someone could trip and fall, strain their back lifting something, or even develop a repetitive stress injury from typing all day. Workers’ comp is there to help cover medical bills and lost wages when something like that happens.

Without insurance, you could be on the hook for those expenses—and that gets expensive fast.

It Protects Both You and Your Employees

This insurance isn’t just about checking a legal box. It’s about peace of mind. If someone on your team gets hurt at work, they get help with recovery without having to worry about finances. At the same time, it protects you as the employer from lawsuits related to workplace injuries.

Everyone wins—it’s kind of a safety net for both sides.

It Makes You Look Legit

Having workers’ comp also signals to employees (and potential hires) that you’re serious about running a responsible business. People are more likely to want to work with someone who takes care of their team. It builds trust, plain and simple.

Bottom Line

Even if your business feels small or “low risk,” workers’ compensation insurance is something worth having. It’s usually required by law, it helps cover unexpected accidents, and it shows your employees you’ve got their back.

If you’re not sure what your state requires or how to get started, it’s a good idea to talk to us. It’s one of those things you hope you never need—but if something goes wrong, you’ll be really glad you have it. Get quote here.