If your state requires workers’ comp for full-time workers, it likely also applies to part-time and seasonal workers.

Do Subcontractors Need Workers’ Comp?

According to your state’s definition of an employee, subcontractors may be required to purchase workers’ comp.

Your state may also mandate you to supply this coverage even if your subcontractors already have it.

Should You Acquire Non-Required Workers’ Comp? Buying workers’ comp insurance may be in your best interests, whether or not it’s necessary.

You’ll need to budget for workers’ comp insurance, but the premium is likely to be cheaper than medical bills incurred on the job.

Workers’ comp protects both your employees and your business. Workers’ compensation covers medical treatment, continuing therapy, and lost earnings for injured workers.

Workers’ compensation pays death payments and a share of funeral costs if an employee dies on the job.

What Happens If You Don’t Purchase Workers Comp Insurance? In most jurisdictions, not having workers’ comp insurance can result in fines or stop-work orders. In some places, you might face misdemeanor or felony charges and jail time.

If your employee is harmed and you don’t have workers’ comp, you’ll be responsible for medical bills, missed earnings, and other benefits.

According to the National Safety Council typical workers’ comp claim costs $40,000.

Workers’ comp is a better value for your business. Small company owners may buy it even if it’s not necessary.

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