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Workers' Compensation Insurance
Almost every state requires this policy for tech businesses that have employees.
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What is workers’ compensation insurance?

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Workers' compensation insurance

Almost every state requires employers to have this insurance to cover medical costs for work injuries and illnesses.

When is worker’s compensation insurance important for a technology company?

State laws determine when a business needs workers’ compensation insurance. Most states require tech companies to purchase workers' compensation insurance as soon as they hire their first employee.

Even when your state doesn’t require it, workers’ comp can protect your business from expensive medical bills from work injuries, as well as lawsuits over employee injuries.

Workers' compensation insurance can cover the cost of:

  • Ambulance rides, emergency room bills, and other employee medical emergencies
  • Medications, physical therapy, and other ongoing costs
  • Part of the wages lost while an employee is recovering
  • Legal expenses if an employee sues your business over the injury or illness

Learn more about workers’ compensation coverage.

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Why you need workers' comp

Here are a few common reasons why you'd buy workers’ comp insurance:

  • Your state requires it
  • You want protection from employee medical expenses
  • You want protection from lawsuits over employee injuries

How does workers’ comp insurance protect against employee lawsuits?

Workers’ compensation insurance almost always includes employer’s liability insurance. This policy helps cover costs if an employee claims their injury resulted from your negligence.

For example, an employee could say their injury wouldn’t have happened if your office had better lighting in a stairwell, or if you’d repaired a broken front step.

Tech businesses in North Dakota, Ohio, Washington, and Wyoming must purchase workers’ compensation through a state fund. These policies don’t include employer’s liability insurance, but you can purchase it from a private insurer to get protection.

Workers’ compensation insurance costs

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Small tech companies with few employees won't have to pay a lot for workers' comp.

The cost depends on:

  • Number of employees
  • Industry risk
  • Payroll
  • Business location
  • Coverage limits
  • Claims history
View Workers' Comp Insurance Costs

Learn more about workers’ compensation insurance for tech businesses

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