Business owners have a responsibility to make their work environment safe for their staff. Even with the best intentions, accidents can and will happen.
Workers compensation Insurance is designed to protect employers from lawsuits from their staff because of workplace accidents, injuries or diseases. It will cover injured works on the job, at the employer’s location or anywhere else while working including auto accidents while on business. The coverage will also include illness and diseases contracted while working.
In most states, businesses are required to purchase workers compensation insurance. For example in North Carolina you are required to purchase it when you have 3 or more employees and in South Carolina, it is 2 or more employees. Keep in mind part time and family members are considered employees. The insurance covers lost wages, medical and rehabilitation expenses, and even survivor death benefits to spouses and children.
My recommendation is to purchase as soon as you hire your first employee especially for my clients whose business are more likely to cause injury like contractor clients and clients who employees driver for their job.