Do I Need Workers’ Compensation Insurance?
If you employ workers, you often need workers’ compensation, but each state sets its own thresholds and exceptions.
NAIC says nearly all states require employers to cover employees, with Texas a notable opt-in exception for most private employers. Contracts and other state rules can add requirements.
List every state where staff work, including remote workers, and confirm each person’s classification. Check the state agency’s threshold, then verify the policy lists the right entity, states, locations, and payroll.
Coverage Guides Related to Workers’ Compensation Insurance
Sources for Workers’ Compensation Insurance Answers
- Workers’ Compensation Insurance. National Association of Insurance Commissioners; Opening definition; mandatory coverage except Texas opt-in; exclusive remedy; monopolistic state funds; self-insurance note. Accessed 2026-09-25.
- Small Business Insurance. National Association of Insurance Commissioners; Typically covers medical expenses, rehabilitation costs and lost wages; check with your state insurance department; ask these questions / who qualifies as a covered employee (contractors, part-time staff, interns); payroll and type-of-work rating factors. Accessed 2026-09-25.
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.