What is workers' compensation insurance?
Workers’ compensation insurance provides coverage for employees who are injured on the job. Each state has its own requirements for whether or not this insurance is mandated, with many states having exemptions for businesses with few employees. Premiums for this type of insurance are tied to the reported payroll for your business—including compensation to the owner and all employees. Insurance carriers generally do not offer coverage to businesses with no employees or those using only independent contractors or temporary workers.