Workers’ compensation laws vary between states, but almost all states require some form of workers’ compensation insurance. At the least, your company must have coverage for your employees, but some states also require coverage for subcontractors, to protect against workplace injuries, accidents, lost wages and potential lawsuits.
Your workers’ compensation insurance will cover medical expenses and lost wages if employees are injured while working on a construction project and are unable to continue working. Employer’s liability insurance, which is additional workers’ compensation insurance, covers lawsuits and settlements that result from workplace injuries or accidents.