Why do you need to buy worker’s compensation insurance?

Why do you need to buy worker’s compensation insurance? All state except Texas require worker’s compensation. Depending on how many employees a firm has. It may be required to have worker’s compensation insurance, when there are one or more employees.

More than half of all state mandate companies to carry insurance. Yes, even a small firm requires worker’s compensation. While state like Missouri, Tennessee and Alabama, demanded for five or more employees. Others, like Georgia, Arkansas and Michigan just required for three or more employees.

If you don’t have worker’s compensation insurance, there maybe severe consequences. In places like California, Massachusetts, Michigan, Pennsylvania and Illinois. There may be charges of criminal noncompliance as a result, depending on the number of employees. The reason for noncompliance and the length of time, a firm was noncompliant. It may also result in fines. For instance, in Pennsylvania, employees may be charged criminally or civilly. People who are accountable for coverage gaps may be sentenced to up seven years in jail and fine $15,000 for their crimes.

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