Workers’ Compensation Insurance

Workers’ compensation insurance is an issue of state law and the specifics vary from state to state. The workers’ compensation system in all states basically involves a “trade-off” between the employee’s right to sue you if he or she is injured on the job, and your obligation to carry insurance that covers him or her. As a business owner, it is very important for you to carry this kind of coverage in order to protect you from liability. In addition, penalties for not carrying workers’ compensation insurance in most states are severe. These policies typically cover medical costs and lost wages for employees who are injured on the job.