Where is Workers’ Compensation Insurance Required by Law?

Every state has laws and penalties related to workers’ compensation insurance. In most states, it’s required as soon as you hire your first employee. Some states, on the other hand, don’t mandate coverage until you have two, three, four or more employees.

For example, in Alabama, you aren’t legally required to have workers’ comp if you have less than five employees. In Texas, business owners are not legally required to buy workers’ comp at all, even though it’s mandatory in every other state. Penalties for not carrying workers’ compensation insurance—when it is required—can range from fines to varying amounts of jail time, or both.

If you want specifics about your state’s workers’ compensation requirements, it’s best to go directly to the source: your state workers’ compensation board. To do that, simply follow your state’s link from the table below:

If understanding workers’ compensation insurance seems overwhelming, you’re not alone. E-COMP can help make workers’ compensation easy and awesome. We’ve taken the guesswork out of the process and we’re passionate about providing workers’ compensation insurance for all size businesses across the country.

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