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Nearly every state in the union requires that employers provide workers’ compensation to cover medical expenses and lost wages should someone get hurt on the job. It also compensates the family if the worker dies. Employers purchase workers’ compensation insurance to cover not only these costs but also legal fees should the employee sue for damages related to the injuries.

In general, how much workers’ compensation you need to purchase depends on state law and varies by industry. A reputable insurance agency should be able to advise you, but if you prefer to do your homework first, here are some things to consider.

What does your state require?

To know the minimum workers’ compensation you need to get, check your state laws. Only Texas does not mandate that companies provide workers’ compensation for their employees. State laws further require that your workers’ comp policies be audited regularly to ensure you are paying an appropriate amount for the risk exposure your people face on the job.

Some states exempt small businesses from having to get workers’ comp coverage if you are the sole proprietor of your business. However, before choosing this option, weigh the potential expense of a claim against the costs of the insurance.

Check with your state department of labor or labor commission to find out the standards. The National Federation of Independent Business has a chart comparing workers’ comp laws by state.

What risks do your workers face?

Construction is the riskiest of all professions, according to OSHA. It has identified the four most serious accidents as falls, being struck by an object, electrocution, and getting caught in or between equipment. With greater risk comes a greater need for workers’ comp.

The risks vary by specific jobs as well. For example, in Florida in December 2016, workers’ comp for roofers Read More Here