Does my company need insurance against workers' compensation claims?

Author: Michael C. Jacobson, XpertHR Legal Editor

Most likely, yes. The definitive answer will turn on state-specific regulations concerning the number of individuals retained as "employees," whether the employer only retains independent contractors, the type of business the employer is engaged in and whether the employer has the option of self-insuring against its workers' compensation liabilities. In the event the employer is permitted to self-insure, it typically must provide proof to the state workers' compensation board of its financial ability to cover workers' compensation claims.