Who Needs Workers’ Compensation?
Who Needs Workers’ Compensation?
Employers in all states except Texas and New Jersey are required by law to have workers’ compensation insurance. And in New Jersey, employers that do not have workers’ compensation coverage can suffer penalties so severe that the obligation is optional in theory only.
Each state sets its own benefit levels, so coverage does not differ among various workers’ compensation insurers within a state.
In North Dakota, Washington, Wyoming and Ohio only the state can sell workers compensation coverage.
Several states operate a worker’s compensation fund that serves as a workers’ compensation insurance company for employers in the state. These funds are available to ensure that workers’ compensation insurance is available to all employers in the state, even those that may have difficulty buying coverage from a commercial carrier.
