Business owners in most states are legally required to have workers’ compensation coverage if they have employees.
However, the laws are different in each state.Colorado law requires coverage as soon as you hire an employee. Tennessee business owners are not required to have coverage until they have five or more employees.Check out the section lower on this page for more details on the workers’ comp rules in your state. Even when it’s not required by law, many business owners buy coverage so they have financial protection if an employee experiences a work-related injury or illness.
You might be required to have coverage to get a license or permit
Workers’ comp may also be required to get a license for some professions. For example, many states ask for proof of workers’ comp insurance with their general contractor license requirements. If you need to obtain coverage to satisfy a license or bid requirement quickly, you can get covered within minutes with NEXT and instantly access your certificate of insurance.