If you have employees, the answer is unequivocally yes. The liability of the employer to an employee is exclusively under the Workers Compensation Act. At one time, there was an elective nature to the Act, but it was rescinded in 1975. Failure to provide workers comp coverage is illegal. It is a crime punishable by fines and restitution. Depending on why you failed to provide workers comp, it can be a misdemeanor or a felony. Usually, intent has to be present for it to be considered a felony. Both result in hefty fines and some jail time.