Worker’s Compensation Insurance offers insurance coverage to your employees if they are injured performing a work–related task during working hours. The employee must sign an agreement that gives up the right to sue the employer for an injury sustained in a work-related incident.

This commercial insurance might actually be required by law. In most states, if you have a minimum number of employees (3-5 depending on where you live), you must provide Workers’ Compensation Insurance. This coverage can pay for any medical care and provide partial wages for an employee who is injured while working. If an employee dies from a work-related injury, compensation may be provided for the employee’s family.